Bitcoin Diamond Coin: what you need to know about this new Bitcoin hard fork
Diamond Coin is a cryptocurrency. Cryptocurrencies may seem difficult to understand, largely due to the associated terminology constantly evolving. In addition, confusion often arises when the media tries to report on certain events in the industry and finds it difficult.
An example of this would be a hard fork. In fact, this refers to a simple change of the cryptocurrency protocol that makes previously unacceptable blocks or transactions valid in the system.
The hard fork is an offshoot of the previous version of the blockchain. The network nodes of an older version of the protocol are no longer supported by the system. In fact, each hard fork is a branch of a new cryptocurrency.
The Diamond Fork
These forks, in a way, represent a form of market democracy. Supporters of each protocol have a chance to develop their own cryptocurrency. For example, consider the famous hard fork after the hack of the DAO fund.
The Ethereum team (ETH) later tried to break off the transaction and recover the stolen funds of the users. Part of the community did not agree with this decision and initiated a fork that became a new cryptocurrency called Ethereum Classic (ETC).
Bitcoin is also not protected against such hard forks. The last of them was produced by Bitcoin Diamond Coin (BCD), which turned off at block 495 866 after forming its own blockchain. The fork took place on 24 November 2017 and was successful, thanks to the efforts of 007 and EVEY.
There are two mining pools, and Reuters reported that the teams “were not satisfied with Bitcoin's shortcomings.”
What’s the purpose of Diamond Coin BCD?
Bitcoin (BTC) was the most popular cryptocurrency of its time. However, it is not without faults. Operations with Bitcoins entail long processing times and eventually become quite expensive. This is due to the fact that BTC blocks are limited to 1MB, which is about three transactions per second.
In the BCD system, the block size limitation is increased to 8MB. This increases the transaction capacity and the blocks are generated five times faster. The growing cost of transactions in the BTC network limits the practical use of cryptocurrencies.
Bitcoin Diamond BCD is also trying to reduce transaction costs. As the BCD executive director explained at a press conference: “Our primary objective is to lower the cost for participation thresholds by reducing the transaction fees and the cost of participation.
The total amount of Bitcoin diamond is 10 times as much of Bitcoin, which translates into reduction of the cost for new participation and reduction of the thresholds.
” Finally, the transactions in the BTC network are accessible to the public – everyone can see what amount is in another person's wallet and track their transactions. BCD encrypts the amount and account balance, ensuring greater confidentiality.
BCD debuts on the stock exchanges
According to the CoinTelegraph, BCD is currently traded on 33 exchanges around the world, including Binance, OKEX, Huobi, Pro and Bit-Z. EXX. com also announced the Bitcoin Diamond Trade. In addition, the Bitcoin Diamond Foundation claims that BCD will support at least six wallets, including BitGo, Bitpie, Coldlar and AToken.
Recently, the foundation announced that Yang Linke, co-founder of BTCC, the first crypto exchange in China, had joined the team. It is believed that Linke, as an adviser to the BCD, will help the new cryptocurrency gain recognition and gain popularity in the PRC.
The Fund informs that other pioneers of the cryptocurrency will also join BCD advisers, which is likely to lead to increased popularity.
Bitcoin Diamond Coin development plan
If Bitcoin Diamond is properly distributed, the team will start implementing the development plan. The medium-term plan is limited to the period from December 2017 to December 2018. This plan also included the fork, which took place on 24 November.
By December, a Bitcoin Diamond mining network, a wallet, a site code and an API will be created. In addition, the open source code will be added to GitHub.
The Diamond Coin BCD can be used by both complete node clients and mining pools. Three pools currently support BCD mining, which will begin after the network is released. BCD supports mining on graphics cards – both AMD and NVIDIA.
Finally, December is planned to update the algorithms for the encryption of the BCD main block chain. The algorithm will encrypt both transaction volumes and user accounting.
What is Bitcoin Diamond Coin useful for?
Is Bitcoin Diamond Coin an improvement on the original? Only the latest hard forks led to the release of Bitcoin Cash, Bitcoin Gold and Bitcoin Diamond Coin. The creators of each currency hope that their release will be better than the original. Bitcoin Diamond began with the ultimate goal of becoming the best cryptocurrency around.
No longer does it suffer from a lack of anonymity, slow confirmation of transaction and a high entry threshold. This enables the team to provide the best solutions for financial companies around the globe.
The total volume of Bitcoin Diamond tokens will be fixed at 210 million. This is 10 times the issue of classic Bitcoin. Of these coins, 170 million will be on the market and the rest will be reserved for the community. These will be used to reward miners.
Bitcoin Diamond does have critics. The arguments from these critics largely focus on the anonymity of the team behind it. However, it’s worth remembering that the identity of the creator of Bitcoin remains a mystery.
Ultimately, anonymity should not prevent the acceptance of this cryptocurrency.