What is Bitcoin Gold?
Bitcoin Gold (BTG), is a cryptocurrency that began in 2017 as a fork of the Bitcoin blockchain, but has been independent since then.
Because Bitcoin Gold began as a fork, it contains the full transaction history of the Bitcoin blockchain up until the fork. This includes the exact balances of Bitcoins held in wallets at that time by users and organizations around the world. Anyone who held a Bitcoin balance immediately before the the fork held an equivalent balance of Bitcoin Gold immediately after the fork. The original Bitcoin blockchain continued, unaffected and unimpeded by this process. The Bitcoin Gold blockchain begin running as a distinct new branch about two weeks later.
As a result of this process, a new cryptocurrency was born.
What is the purpose of Bitcoin Gold (BTG)
The purpose behind creating Bitcoin Gold was to make mining decentralised again.
Bitcoin Gold has changed the Bitcoin proof-of-work algorithm from SHA-256 to Equihash.
What does that mean?
The Equihash algorithm is more resistant to ASIC (Application Specific Integrated Circuits) chips and runs on GPU’s, which are easily available to the public. Thus, leading to a more decentralised, democratic mining infrastructure and complying with Satoshi Nakamoto’s idealistic vision of “one CPU, one vote” for Bitcoin.
Bitcoin Gold was created with that vision in mind.
So, are Bitcoin Gold and Bitcoin competitors?
Bitcoin Cash and B2X are hostile forks that use the same PoW algorithm as Bitcoin – SHA256 – which results in a permanent state of conflict over a finite amount of ASIC mining hardware that is required for solving SHA256 proof-of-work.
Bitcoin Gold, on the other hand, uses the Equihash PoW algorithm, which cannot be solved using ASICs that have been designed for Bitcoin’s SHA256. This ensures that Bitcoin Gold is not in competition with Bitcoin over limited resources. Instead, Bitcoin Gold has an entirely different mining infrastructure, consisting of general purpose computer hardware (GPUs).