Make mining decentralized again!
With a Trump-esque overture, the Bitcoin Gold community presented the beginning of the development of the protocol kicking in tomorrow, October 25th 2017. Bitcoin Gold is born to pilot Bitcoin upgrades, as a few developers perceive that the Bitcoin blockchain has become too centralized, after falling in the manipulating hands of a few mining companies.
How? The change in the original protocol combats the mining centralization problem by implementing a different mining algorithm that will make strong, more technical miners irrelevant, since the coin will be mineable even with simpler, cheaper graphic user interfaces, or GPUs, and the mining difficulty will be determined per-block, instead than for a period of time.
If you want my two cents, I believe there are ups and downs to this new protocol. I believe it is certainly interesting to build in a structure that empowers smaller parties against speculating forces, which is more coherent with the political nature of the birth of Bitcoin, as laid down by Satoshi Nakamoto in the Bitcoin whitepaper (LINK): making transactions independent from banking and national states, giving humankind an alternative to institutional monetary control.
Clearly, given the competitive nature of bitcoin mining, in retrospect it makes sense to understand that concentrated groups would rely on more extensive technologies to ensure that they’d be obtaining most of the advantages, compromising the very reason for which Bitcoin was created: decentralization.
Besides, this protocol is a buffer, a temporary solution until more solid features can give Bitcoin the same scope of international credit card companies, such as VISA, bringing blockchain a step closer to realizing the aims of its creators.
Fasten your seatbelts: Bitcoin has been on the rise in the past week and has touched levels above 6000$, before slightly correcting. The 16000 pre-mined BTG coins have been traded pre-launch since yesterday, and will be launching on a large scale starting tomorrow. Current bitcoin holders who possess private keys to BTG have the possibility to redeem BTG from BTC one-to-one, matching their current holdings.
Check the prices on https://coinmarketcap.com/currencies/bitcoin-gold/ and be ready for a storm!
Lorenzo M. Zorzi Chiarioni
Masters' in Management
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