Due to a recent hard fork incident, Bitcoin Diamond has begun to challenge the dominance of Bitcoin. Some experts say that Diamond’s method of managing each individual bit is superior to that of the original Bitcoin. This has inspired some users of the original currency to switch over to this new design. Others have decided to leave their P2P accounts alone since they’ve invested so much in Bitcoin already.
How Hard Forks Come About
Some block chain administrators might want to put through a series of upgrades that many of the other coders they work with don’t necessarily agree with. They’re usually able to resolve their differences by putting through upgrades that don’t fundamentally change the way that BTC mining works in their chain. Disagreements over how to manage an individual block might get so serious, however, that some coders will take their upgraded algorithms to a new node.
Upgraded nodes suddenly adhere to a new set of guidelines. Drastic changes result in a hard fork, which essentially creates a new cryptocurrency in the process. While these kinds of issues have influenced Ethereum for some time, Bitcoin isn’t immune from them. Block 495,866 broke off to become Bitcoin Diamond. The new block chain comes with a separate private key and an entirely new signature for users who want to carry Bitcoin Diamond in their digital wallet.
Diamond Aims at Lower Prices
Team BCD, who forked Diamond, says that the fact Bitcoin trades above $12,000 means most people can’t get into the market anymore. They want to allow those who can’t enter in at those prices the chance to place their own investments. Likewise, they hope to offer Nvidia and AMD GPU mining so that individuals using a wide variety of hardware platforms can participate. Open-source drivers are available for this kind of hardware, which might also help to encourage participation from those using freely available operating system architectures. Ironically, this level of investment may, in turn, boost demand for Bitcoin Diamond from P2P networks and therefore lead to increased trade values.
The identities of those involved with Team BCD are currently kept secret, which has certainly led to some criticism. Defenders of the organization point to the fact that the creator of Bitcoin is still unknown yet these same criticisms aren’t usually levied at the older cryptocurrency.
Is Bitcoin Diamond Truly Better?
Bitcoin and Bitcoin Diamond essentially fulfill different needs. While Diamond claims to be the better Bitcoin, it’s market structure is so drastically different from the original that it might as well be considered something else entirely. The total supply of Diamond tokens is currently set to be 210 mln, which is nearly ten times the value of the original Bitcoin. Only 170 mln are on the market while the rest get reserved in a sort of rewards pool that should help to stabilize the tribute and mining process. Investors who are unsure whether to move to the new currency could keep a number of Bitcoin tokens in their wallet while also putting some of their material assets into newer Diamond tokens.