The original project of Bitcoin and its forks (bifurcations) share many of their main characteristics, the similarities being more than the differences. We will compare the forks more important: Bitcoin Cash, SV, Gold Y Diamond.
What is a fork from Bitcoin?
In its simplest form, a fork or fork is when someone creates a copy of a code from a blockchain Bitcoin and makes changes to it. These changes can be made for a number of reasons. For example, impossible to reconcile differences between developers regarding important decisions about how the system should work, to experiment with new functionalities, to create a competing system, or even for security reasons. There are generally two types of blockchain forks: A soft fork or soft fork and a hard fork o hard fork.
One soft fork it’s easier than a hard fork, as only small changes are made to the blockchain. A soft fork is known for being backward compatible because, while old transactions are no longer valid, new transactions are recognized by both old and new nodes. So that a soft fork To be successful, you need to receive a majority consensus which is like a public vote.
A node is used to describe a device that is connected to the blockchain to help verify transactions. There are thousands of nodes Bitcoin located all over the world.
One hard fork from Bitcoin is different as it essentially creates a new version of the blockchain incompatible with the old version. Bitcoin Cash is a famous example of a hard fork from Bitcoin. Since most of the blockchain like Bitcoin is open source, anyone can observe it and copy the code, which means that a hard fork from Bitcoin It can be carried out by anyone, the difficult thing is to convince a sufficient number of participants to use this chain. In the beginning all other cryptocurrencies were simple hard forks of Bitcoin, for example, Litecoin, Dogecoin, Dash, ZCash, all of these started as forks from Bitcoin.
Now we will compare the forks that kept the word Bitcoin as first name.
Bitcoin Cash (BCH)
Executed on block 478,558, on August 1, 2017, for each Bitcoin (BTC) in stock, their owners received 1 Bitcoin Cash (BCH)
During 2017 an important group of developers of Bitcoin decided to carry out a hard fork of the client of this cryptocurrency but they ended up creating another cryptocurrency and a completely new blockchain: Bitcoin Cash, separating from the original project.
The decision to create a fork was because of high network commissions that users pay to transfer their funds, which increased to exceed the dollar per transaction and also a consensus was not possible to accept the proposal to increase the maximum block size from 1MB to 8MB to solve the problem.
Bitcoin Cash, By incorporating this new feature, it allowed miners to add a greater number of transactions per block by increasing its size, lowering its cost per commission.
Increasing the block size eight times caused it to scale from 7 to 61 transactions per second, increasing the overall speed of the system.
The mining algorithm remains at SHA256 just like him Bitcoin original, likewise the maximum limit of circulating currency is still 21 million BCH.
There is a positive correlation between Bitcoin Cash Y Bitcoin what causes Bitcoin Cash acquire value aggressively with the price increase of Bitcoin and its price falls precipitously with a small fall of Bitcoin. This may be striking to trader Of high speed. The price of Bitcoin Cash As of the date of this article, it is USD $ 453 with a capitalization of USD $ 8 billion, establishing it as the fork with the highest capitalization.
Bitcoin SV (BSV)
Executed on block 556,766 of Bitcoin Cash, on November 15, 2018, for each bitcoin cash (BCH), its owners received 1 bitcoin SV (BSV).
Claiming to be designed according to the initial vision of the Bitcoin from Satoshi Nakamoto, Bitcoin SV is a new cryptocurrency that pointed to “bring back”The main values of Bitcoin original, the most notable being the fact that it could be used as a common currency due to the large increase in the number of transactions per second and its low cost in network commissions.
Bitcoin SV was born as a result of the conflict over the future of the Bitcoin Cash. The conflict involved changes in the ordering of transactions when they are included in the blocks (Canonical Order, which would allow to solve important vulnerabilities of the protocol and leave the way free for the implementation of parallelism in the future) as well as the size of the blocks. of the cryptocurrency, which determines how many transactions they could process per second.
Technically the difference is that the block size was increased to a maximum of 128MB at the time of conception. In tests, other sizes were tested up to 2GB and an adaptive block size is being considered.
Since the Blockchain used to run the fork it was of Bitcoin Cash, users who had a balance in BCH received the same amount in BSV.
As of the date of this article, the price of the Bitcoin SV It is USD $ 361 with a capitalization of 6 trillion US dollars. It is the second fork with the highest capitalization after Bitcoin Cash.
Due to its low cost in network commission and transfer speed, the public is using it more frequently than Bitcoin to write data to the Blockchain, not necessarily value exchange transactions. For example, there is a large amount of information about the weather in different parts of the world, or information about the price of cryptocurrencies that is written in each new block of Bitcoin SV, however economic activity is pale compared to BCH, up to 10x lower.
Bitcoin Gold (BTG)
Executed on block 491,407, on October 24, 2017, for each Bitcoin (BTC), the owners received 1 Bitcoin Gold (BTG)
Bitcoin gold it keeps the maximum block size at 1MB just like its predecessor. It introduces a new change with respect to the other forks. Bitcoin gold changed the mining algorithm from SHA256 a Equihash, used by ZCash. EThis allows anyone to mine using a graphics card on their computer. In fact, the miners of ZCash they can mine Bitcoin gold.
To date Bitcoin gold It has a market price of USD $ 12 and a capitalization of USD $ 225 million. It is striking that some exchanges do not charge an exit rate, which is why it is ideal for quickly transferring balance from one exchange to another avoiding commissions.
Bitcoin Diamond (BCD)
Executed on the block 495,866 of Bitcoin, on November 24, 2017, for each Bitcoin (BTC), the owners received 10 Bitcoin Diamond (BCD)
For November 2017 this fork takes characteristics of its competitors and adds a new limit to the maximum amount of circulating currency at 210 million BCD, 10 times the maximum set by Bitcoin.
The block size is 8MB like Bitcoin Cash, just as fast and low in network commission. Use the mining algorithm X13 which allows mining using graphics cards just like Bitcoin gold. With the Bitcoin Diamond, there are only 1000 blocks to be mined with the proof of work mechanism PoW, after which the platform will switch to using the pull test.
As of the date of this article Bitcoin Diamond It is priced at just $ 0.83. It is especially striking that it is close to the price of a dollar. ORA cryptocurrency with a value similar to the dollar and a fast transfer speed might be more appropriate for going to the supermarket.
Market capitalization is just $ 156 million, the lowest in capitalization among these four forks.
The white paper of the main cryptocurrency was launched on October 31, 2008. It is the leading cryptocurrency, as of the writing date of this article it has a price of more than 9 thousand US dollars and a capitalization of USD $ 181 billion, which makes it by far , the most widespread in the world of cryptocurrencies.
Bitcoin It proves to be a store of value more similar to gold in its behavior than to a common currency.
However, your transfers can take anywhere from an hour to a couple of days similar to a bank transfer, therefore, in the real world, it is still a better option than traditional banking.
New implementation proposals are emerging every time, as we present it in the following article:
Differences between Bitcoin ABC, SegWit2x y Bitcoin Unlimited
Article by Carlos Hernández for DiarioBitcoin.
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Diferencias entre Bitcoin, Bitcoin Cash, Bitcoin SV, Gold y Diamond – DiarioBitcoin