Hard forks can give birth to new cryptocurrencies and two new Blockchains. It depends then on the community surrounding these chains and the markets as to which one would become more ‘dominant.’ After a hard fork in usual cases holders of the original coin, also end up having the new coin. Bitcoin has had a number of hardforks this year, which include Segwit, SegWit2x, Bitcoin Cash, Bitcoin Gold and the latest being Bitcoin Diamond. While the changes brought in by SegWit allowed Bitcoin to continue on as the currency as it was, Cash, Gold and Diamond have created new currencies. Cryptocurrency forks like the ones that happened in Bitcoin usually require support from coin miners. In case of Bitcoin Diamond, for example, the fork occurred at block 495866 and was made possible by minders Team EVEY and Team 007.
The motivations for creating forks can be different and can range from ideological to implementing ‘reforms.’
Giving birth to a new coin
Bitcoin Diamond (BCD) has now its own chain and even a foundation that will support research and development related objectives. The currency has taken on a divergent road from its parent. The Bitcoin Diamond Foundation has already begun efforts to build a community around the new crypto. In a major development they have secured the help of Co-founder of BTCC, Linke Yang, who will act as an advisor. Yang’s help will help BCD gain ground in China. BCD Foundation informs Cointelegraph that they have already got community teams in place in China, Italy and Korea, while those in North America and Australia are being established. There are plans afoot to bring on board other experts to help conduct R&D activities. Bitcoin Diamond will have a total of 210 mln coins, which is ten times the number Bitcoin has, out of which 170 mln will be available for the markets and the rest would be utilized as a ‘rewards pool’ for the purposes of tributes and mining.
Important developments in BCD universe
After BCD came into being, it has already found some support in the form of exchanges. 33 exchanges have agreed to list the new coin. Some of which are Binance, OKEX, Huobi.Pro and Bit-Z. EXX.com has even announced futures trading of Bitcoin Diamond. Wallets that are supporting BCD include BitGo, Bitpie, Coldlar and ATOKEN. On a technical front mainnet code upgradation has been completed and so has the mining algorithm. Mining pool interface and GPU miner development is currently in progress. BCD will be supporting both AMD and Nvidia based GPU mining.
Aims and objectives
The BCD team wants to add new features and improve the speed of transactions. In case of Bitcoin (BTC), the transactions have been taking longer than before since BTC is only limited to one transaction every three seconds and has a blocksize of only one megabyte. In case of BCD the block size has been increased to eight MB. This means that BCD transactions can be conducted five times faster than BTC transactions. BCD will also have a lower transaction fee, as the amount of BCD is significantly greater than BTC, the initial cost of participation for users would be reduced. By adding features such as transaction privacy, BCD will be taking a significant step away from BTC. At the moment BTC transactions are visible to everyone, BCD will encrypt this information. Users of BCD will be able to hold, send and receive coins to each other without having to worry about prying eyes.
A fork in the road
Forks are just like the physical forks in a road. When they occur, there can be instances that two currencies set on completely different paths. In case of Bitcoin Diamond, the new currency is now already shaping its future. However, when it comes to adoption, it would be their efforts centering around community building that would assume significance. It may be easy to launch a new currency, but that is only half the work done. Getting people to use the currency would need the implementation of features and attributes that are demanded by the mass markets.