Bitcoin Cash (BCH) and Bitcoin Gold (BTG): Significant Differences between Forks
Bitcoin Cash (BCH) vs. Bitcoin Gold (BTG): Significant Differences for Forks
In 2017, two big Bitcoin hard forks emerged, which led to the emergence of new cryptocurrencies. Both newly created payment systems are based on the principles of Bitcoin, but they also differ from it. The coins’ creators’ goal was precisely the desire to make a new Bitcoin, which differs from the old for the better.
Let’s take a look at these forks.
What Fork is Bitcoin Cash (BCH)
Bitcoin Cash was designed for fast transactions and low fees. Due to these characteristics in the name, it is positioned as a kind of “electronic money.” Bitcoin Cash (BCH) contains a bigger block size, which means that network can carry more transactions.
Bitcoin proponents argue BCH changes are obligatory. And SegWit has already helped to low the transaction fees.
Bitcoin Cash (BCH) is in the TOP-20 cryptocurrencies in terms of capitalization. It was the first sizeable hard fork in 2017, inspiring other Bitcoin hard forks.
What is BTG
Bitcoin Gold (BTG) solves another problem in Bitcoin: the growing mining centralization, which requires specialized equipment and makes mining impossible for the average person.
Specialized hardware known as ASICs is required for profitable mining. And these mining pools can use power over the network due to their sheer size.
The Bitcoin Gold (BTG) hard fork solves this problem by replacing the SHA-256 mining algorithm with Equihash. It’s a proof-of-work algorithm that needs enormous amounts of electricity and processing power. Still, it gets a lot more complicated for optimization based on ASIC. Bitcoin Gold (BTG) is designed to make ordinary people with powerful GPUs mine Bitcoins on their computers again. And it’s making the network more decentralized.
The Bitcoin Gold (BTG) appeared in 2017.
Difference Between BCH and BTG
Some of the changes implemented in the Bitcoin Cash (BCH) and Bitcoin Gold (BTG) code are so significant that only the name and history have in common with the Bitcoin (BTC). Yes, and among themselves, cryptocurrencies differ very significantly.
The key differences are the following:
- The algorithms of hash. Bitcoin Cash (BCH) works with the SHA-256 mechanism as classic Bitcoin. And BTG uses Equihash, familiar to many from Zcash. The transition to it is due to the resistance to the creation of ASIC. You can only mine BTG on video cards, and Nvidia is sometimes more suitable for this purpose than AMD. Thus, the developers plan to avoid the excessive concentration of mining capacities, on the one hand, thereby preserving decentralization in the structure of the blockchain network.
- Complexity. This parameter is used to maintain a stable speed of finding blocks, regardless of the network’s total hash rate. It is revised approximately once every two weeks in classic Bitcoin, similarly in Bitcoin Cash (BCH). In Bitcoin Gold (BTG), the difficulty is fixed and corrected after founding each new block. Frequent revision of complexity allows you to adjust it more quickly, thereby ensuring a more even distribution of the reward among miners. It also allows you to avoid situations when introducing a new, colossal pool leads to increased earnings for its owners until the moment of revision.
- Size of the block. The limit of the block size increased on the BCH network to 8 MB, compared to the original Bitcoin. In Bitcoin Gold (BTG), the creators did the same as the original BTC developers and added the SegWit protocol. It allows you to move part of the data outside the blockchain, thereby increasing the usable block capacity of 2-4 MB.
- Anti-replay protection. The replay protection mechanism is implemented in both cryptocurrencies, but it is slightly different. In BCH, the signatures of transactions were marked, indicating that they belong only to this currency. In BTG, wallets are identified by changing the address prefix. In Bitcoin Cash (BCH), the address system remains the same.
- Exchange Rates. Because Bitcoin Cash and Bitcoin Gold are separate cryptocurrencies, their rate is determined by the market independently of each other. Being a “pioneer” in the BTC hard fork market, BCH was able to gain more recognition. Crypto exchanges now give about $ 626 for this virtual coin. The second fork is valued much less. The market offers about $ 66 for one BTG coin.
In conclusion, it is worth noting that the market reacted to the new Bitcoin forks without much joy, for which there is an explanation. After all, if someone monthly makes new hard forks, positioning them as “real Bitcoin, true to the ideas of Satoshi Nakamoto,” then there will be confusion. So it is pretty logical that Bitcoin Cash (BCH) was still positively received by enthusiasts, and Bitcoin Gold (BTG) has not experienced this.