Bitcoin. Bitcoin Cash. Now, Bitcoin Gold. From the way things are moving, Bitcoin is set to go through another hard fork on the 25th of October to birth another coin different from the Segwit2x hard fork expected in November.
According to reports, a small percentage of miners intend to fork the Bitcoin blockchain in order to create a cryptocurrency that is decentralized to make mining easier for people who can't afford mining farms. Which is a strange thing for a group of miners to want, right?
On October 25, the miners, led by Jack Liao, CEO of Hong Kong mining firm LightningASIC, say they will add a new feature to the blockchain, changing the algorithm so that the coin can be mined with graphic cards.
According to an anonymous Bitcoin Gold developer, The Sorrow, "Bitcoin goldwill implement a proof-of-work change from bitcoin's SHA256 to Equihash, a memory-hard algorithm that is ASIC-resistant and optimized for GPU mining."
This will ensure that the coin is mined by thousands of people around the world with basic computer hardware, which won't be as costly as mining B Cash or Bitcoin. This is expected to ensure that the coin is really decentralized and no one has a firm hold on it.
Decentralization goal doubt
Achieving a decentralized is easier said than done, though, and some people don't believe a totally decentralized coin will be achieved in the end.
"GPU mining can't prevent centralization," Zhao Dong, a cryptocurrency trader and investor said. "GPU [markets] are controlled by Nvidia and AMD."
Nevertheless, it is too early to conclude that Bitcoin Gold will be controlled by Nvidia and AMD.
Reason for Bitcoin Gold hard fork
The new coin, however, is expected to challenge Bitcoin Cash but it looks like it will be much smaller than the August hard fork coin. Apart from this, not much is known about Bitcoin Gold except that each Bitcoin holder will receive an equal coin amount of Bitcoin Gold when the fork happens in October.
"It is a minimalist fork of the Bitcoin Core codebase in the spirit of litecoin – only a few conservative modifications," said h4x, another developer who prefers to remain anonymous explained.
Bitcoin Gold advocates, however, say they don't intend to cause more confusion or split in the Bitcoin community with the hard fork. They say Bitcoin Gold is an implementation of the Bitcoin protocol on a different mining hardware.
According to H4x, the Bitcoin Gold project is a test of how hard fork works and if it will benefit the ecosystem.
"Organisms derive benefits from creating offspring. With bitcoin gold we are conducting an experiment to see if that principle holds true in the world of blockchains", he said.
The emergence of Bitcoin Gold fulfills predictions made earlier that there'll be more Bitcoin hard forks in the future following the August 1st Bitcoin Cash hard fork. But few people would've guessed that a hard fork would be to test a concept and have nothing to do with money.