Comprehending the Bitcoin Diamond fork.
Bitcoin was the very first cryptocurrency. It is well known and understood, at least until this point of time, that it is doesn’t provide enough scalability to become a global cryptocurrency, hence the fact must be agreed upon that better version of Bitcoin or other cryptocurrencies offering other better implementations must be adopted. As Bitcoin is the Pioneer in the field many of them want to modify the protocol of the original Bitcoin version and make it available. Make it ready for the future transactions of the cryptocurrencies. Bitcoin went through many forks in the past like bitcoin cash, bitcoin diamond, bitcoin gold etc.
This process of changing the protocol is known as forking. Forking has two types, hard fork, and soft fork. A hard fork is the nothing but the change of protocol code and initiation of a new blockchain from where the fork is initiated. It is to be understood that during a hard fork, backward compatibility is not possible which means, the uses of the older Blockchain would not be able to use the features of the newer one. The hard forks are usually implemented to improve some of the characteristics of the cryptocurrency whichever it is lagging behind. In the case of Bitcoin Bitcoin cash, Bitcoin gold, and Bitcoin Diamond are some of the hard forks which were undertaken within the past few years.
Bitcoin diamond fork
The Bitcoin Diamond hard fork took place in the November 2017. It was done in order to improve the functionalities of Bitcoin, on block number 495866. It was a friendly fork because it was not made to compete with its original parent chain. Even this particular hard fork was initiated in order to solve the scalability, lack of privacy as well as slower confirmation of the transactions. In order to improvise the blockchain.
The details of the fork
According to the marketing strategy of the fork, users with one bitcoin would get 10 Bitcoin diamonds on joining the new upgrade. The fork was effective enough and increased the block size from 1 MB to 8 MB and in turn, a number of transactions were able to get verified.
It even provided for an increased privacy through encryption. This Bitcoin fork is the only fork, which concentrates upon privacy which until now no other forks have been known for. The protocol effectively encrypts the transactional information such as the amount and the addresses, as this data was easily accessible by the unethical masses on the Bitcoin Blockchain.
Fixed market cap
The market cap was fixed and was 210 million coins i.e 10 times the market cap of Bitcoin. Around 170 million coins were held by the community personals and the rest 40 million was released for the mining purposes in the form of rewards.
The mainnet was launched in December 2017 along with node codes, API release, and open source release on GitHub. The cryptocurrency supports AMD as well as Nvidia GPU Mining capabilities. Similar to the anonymity maintained by Satoshi Nakamoto, the developers of Bitcoin diamond too is unknown to date. People know them only through their pseudonym EVEY and 007.
Adoption and popularity
Bitcoin Diamond was quite popular in its initial days and was listed on 33 cryptocurrency exchanges and 6 wallet providers also supported it. Linke Yang, co-founder of BTCC is also deemed to be supporting this fork and has helped the currency gain momentum in China, as BTCC was China’s first cryptocurrency exchange.
In case of Ethereum, when the network experienced a DAO attack, the community members decided to initiate a hard fork which was named as Ethereum and the original blockchain continued as Ethereum Classic.
There is an ambiguity about the mainstream adoption of the Bitcoin diamond when compared to that of Bitcoin itself as the cryptocurrency coin provides enough scalability with its segwit nature but it’s also downsides also persist, where the developers of the community along with the roadmap doesn’t seem to be quite trustable. In this fluctuating cryptocurrency in the market, it only happens once in a blue moon, that the happenings of a cryptocurrency go in line with our predictions as the cryptocurrency market is dependent upon the assumptions and beliefs of the investors itself.