What currency does Bitcoin Gold belong to?

Emerging as a fork of Bitcoin in October 2017, Bitcoin Gold (BTG) employs the Equihash algorithm, promotes decentralization, and incorporates privacy-enhancing features like Confidential Transactions.

Nov 20, 2024 at 06:40 pm

Unveiling the Nature of Bitcoin Gold: A Derivative of the Pioneering Cryptocurrency

What Currency Does Bitcoin Gold Belong To?

Bitcoin Gold (BTG) stands as a fork of the renowned Bitcoin (BTC) cryptocurrency, emerging in October 2017. As a fork, BTG shares the underlying blockchain technology and principles of its parent, yet it distinguishes itself through the implementation of specific modifications.

Understanding the Bitcoin Gold Blockchain

1. Genesis Block and Supply:

   • BTG's blockchain originates from a snapshot of the Bitcoin blockchain at block height 491407.
   • It inherits the supply limit of 21 million coins, identical to BTC.

2. Proof-of-Work Algorithm:

   • BTG employs the Equihash algorithm for proof-of-work, differing from the SHA-256 algorithm used by BTC.
   • Equihash is ASIC-resistant, aimed at promoting decentralization by allowing mining on standard hardware.

3. Block Time and Reward:

   • BTG's block time is set at 10 minutes, aligning with BTC's interval.
   • The initial block reward was 12.5 BTG, subsequently undergoing halvings аналогично биткоину.

4. Replays and Compatibility:

   • Transactions on the BTG blockchain are not compatible with the BTC blockchain.
   • Events occurring on one chain do not replicate automatically on the other.

Unique Features of Bitcoin Gold

1. ASIC Resistance:

   • BTG's Equihash algorithm is designed to resist mining by specialized ASIC (application-specific integrated circuit) hardware. This promotes decentralization in mining operations.

2. Improved Transaction Privacy:

   • BTG incorporates a privacy-enhancing feature known as Confidential Transactions (CTs).
   • CTs encrypt transaction data, concealing amounts and sender/receiver addresses.

3. Smart Contract Compatibility:

   • BTG supports smart contract functionality through its integration with the Rootstock sidechain.
   • This allows developers to create and deploy decentralized applications (dApps) on the BTG ecosystem.

4. Community Governance:

   • BTG operates through a decentralized governance model, which involves community voting on proposed changes.
   • Holders of BTG have a say in the future development and direction of the project.

Availability and Trading of Bitcoin Gold

BTG is widely available across a range of cryptocurrency exchanges, including Binance, Coinbase, and Kraken. It can be traded against fiat currencies (e.g., USD, EUR) and other cryptocurrencies.

Current Market Capitalization and Price

As of [insert date], Bitcoin Gold has a market capitalization of approximately $[insert value], ranking as the [insert ranking] largest cryptocurrency.