A new cryptocurrency was created using a hard fork of the bitcoin blockchain.
Completing a process that began in July, the Bitcoin Gold technical team took what it calls a "snapshot" of the bitcoin blockchain to recreate and reconfigure it with new rules, creating finally from the bitcoin gold to 491,407 blockchain block.
At this time, the process is underway with which the new bitcoin cryptocurrency will be completed and released to existing bitcoin users.
As described in our explanatory, the project aims to tackle the perceived problem that miners as a group have too much influence on the direction of the bitcoin network. To reduce their control, the bitcoin gold replaces the current Bitcoin mining algorithm with an algorithm that cheaper graphics processing units (GPUs) are able to extract.
The idea stems from the competitive nature of bitcoin mining, which now rests solely on expensive application-specific integrated circuits (ASICs). Partly because of this, mining has been centralized in the hands of large mining companies, which bitcoin gold proponents see as going against Bitcoin's key proposition : decentralization.
Yet, while the hard pitch has been initiated, it does not mean that users can still claim their funds.
Until they can, bitcoin gold developers will exploit the new blockchain in isolation, with the first set of block rewards reserved for the development team. .
According to group representatives, the new cryptocurrency network should be open to the public by November 1st.
Image of the saw blade via Shutterstock