Last Updated on September 23, 2023
Bitcoin is the most widely used cryptocurrency in the world. It is also the most expensive. However, as with any other cryptocurrency, it has its drawbacks. It takes a long time and costs a lot to execute transactions since Bitcoin has a very little block size. To address these issues, developers have begun to consider alternative solutions, the most straightforward and logical of which is a hard fork of the blockchain network. It is now allowed to change the bitcoin protocol that determines how operations or blocks are handled in the system, which was previously regarded as unacceptable in the cryptocurrency community.
The Bitcoin Diamond (BCD) is a cryptocurrency that works in the same way as Bitcoin. The block sizes, as well as the development algorithm, have been replaced by this cryptocurrency. The objective of Bitcoin Diamond is the same as that of Bitcoin: to provide an easy payment system for online transactions that can be used as a wonderful substitute for fiat money.
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The Bitcoin Diamond (BCD) cryptocurrency and How does it Work?
BIP44 is the guideline that makes a predictable wallet a necessary tool, and it is this standard that Bitcoin Diamond adheres to function correctly. The wallet owner need only preserve their private key and utilize a secret phrase (the “seed” value) to produce a vast number of related addresses that will all be tied to their wallet if this standard is followed. Finally, all that is required is a copy of the private key or master seed.
If the user cannot recall their secret phrase, they will lose access to all their available cash. Keep in mind that storing the secret phrase is not suggested because this makes the information vulnerable to theft by hackers.
Bitcoin’s blockchain information block contains information on both signatures and transactions that have been completed. In other words, there are just a few transactions per block in this case. The Bitcoin Diamond project’s designers successfully increased the block size to 8 MB, increasing transactional capacity. Bitcoin’s new block creation process is five times faster than the original Bitcoin’s.
Characteristics of Bitcoin Diamond (BCD)
One of the primary features proposed by the BCD cryptocurrency’s developers is a particular upgraded mining method, designated by the symbols X13, designed to mine the cryptocurrency using a graphics processing unit (GPU). With the help of Bitcoin Diamond, it was possible to add support for SegWit, construct replay protection, and implement a mixed PoS/PoW consensus process. The following characteristics distinguish the Bitcoin Diamond cryptocurrency:
- It increased the number of tokens available (210 million coins).
- Unlike other cryptocurrencies, Bitcoin Diamond was not meant to be used for trading.
- The block size has been increased to eight megabytes.
- It is estimated that there are ten times more BCD tokens than there are BTC tokens.
- The overall size of the blockchain is around 140 GB when it is fully assembled.
- Bitcoin Diamond has a better level of confidentiality than Bitcoin.
- The coin has a mining algorithm that has been optimized for efficiency.
- Every two weeks, the difficulty of mining is revised.
- Bitcoin Diamond is a new technique used to encrypt currency and the names of the people who own them.
Mining for Bitcoin Diamonds (BCD)
Developments have also impacted the mining industry. Experts chose the X13 algorithm because of its 13-round verification, which is the essence of the algorithm. Know that the primary disadvantage of SHA-256 is the usage of ASIC mining, which might result in a lack of decentralization because there is a possibility that the cryptocurrency will become concentrated in the hands of a few mining pools. Because the X13 algorithm is more resistant to such hardware devices, it is recommended. You can also mine BCD coins at home. However, a video card with sufficient memory capacity is required for this.
From a technical sense, Bitcoin Diamond is a more sophisticated approach than the original bitcoin, and the concept of successful GPU mining has gained traction. Nonetheless, predicting the long-term performance of any asset is quite challenging. We advise investors to stick with more traditional cryptocurrencies when making their purchases.