Bitcoin has experienced various hard forks. Bitcoin Cash, Bitcoin Gold and now Bitcoin Diamond (BCD). Bitcoin Diamond is a fork of Bitcoin that occurs at the predetermined height of block 495886. It shares the same transaction history with Bitcoin until it starts branching and forming its own unique block from which it diverges.
In this guide, we’re going to review all features of Bitcoin Diamond (BCD) hard fork, and why it was created.
So, let’s get started
- Basic Features of the Bitcoin Diamond
- How do transactions work?
- Similarities & Differences of BTC and BCD
Bitcoin BTC is regarded as the first cryptocurrency of its generation. Its design is quite basic and this has made it necessary to come up with hard forks. Bitcoin is not able to conclusively solve the anonymity and privacy issues and this is where Bitcoin Diamond BCD comes in. This cryptocurrency is basically based on Bitcoin's core.
So, What is the Bitcoin Diamond?
Bitcoin Diamond (BCD) is a fork of Bitcoin that occurs at a predetermined height of block 495866. It shares the same transaction history with Bitcoin until it starts branching and forming its own unique block from which it diverges. BCD miners can begin creating blocks with a new proof-of-work algorithm, and will consecutively develop and enhance the protection for account transfer and privacy based on original features of BTC.
The main difference with Bitcoin Diamond is that they multiplied the supply by 10. If you had 1 BTC before block 495866, you now have 10 BCD. This is done by moving the decimal point rather than making the coin more divisible.
The Basis of the Hard Fork
In 2017, two Bitcoin miners decided to change the network’s protocol which is called Bitcoin Core. They weren’t satisfied with the way that Bitcoin was working and thought they could improve it. Evey and 007 named their improved protocol, Bitcoin Diamond.
The main improvements Evey and 007 wanted to make to the Bitcoin protocol were;
- Faster transaction: The Bitcoin network can only process about 2-7 transactions per second, Evey & 007 considered it as Unacceptable and decided to improve the way the network functions.
- Lower transaction fees: Each transaction on the Bitcoin network is charged a fee. The fees for transactions have become very high in recent years. Cryptocurrencies are supposed to help users avoid paying high bank-transfer fees so Evey and 007 felt that Bitcoin’s fees should be going down, not up!
- Encourage new users: Bitcoin has become very expensive. Today, one Bitcoin is worth more than 6,000 USD. This makes it very hard for new users to buy one Bitcoin. The creators of BCD feel that Bitcoin should be for everyone, not just those who can afford it.
These miners wrote changes into the Bitcoin protocol that they hoped would achieve these goals. The Bitcoin Diamond fork happened on November 24 2017.