Bitcoin Diamond

Bitcoin Diamond: A Crypto-User’s Best Friend?

Bitcoin Diamond (BCD)

Bitcoin Diamond (BCD) is a fork of Bitcoin that happened when the Bitcoin network reached block number 495,866. From that block and forward, Bitcoin Diamond miners have been creating blocks using an algorithmic Proof- Of-Work consensus that is totally different than the Bitcoin chain it branched from. According to the Bitcoin Diamond FAQ page, they have also successfully increased the privacy of transaction data by enabling a piece of code which hides the transactional amounts being sent through the network.

Bitcoin Diamond is Bitcoin, Plus a Few Changes

Bitcoin Diamond, at the code level, looks very similar to the network from which it came.  One difference that is notable in a huge way is this: Bitcoin was created with a maximum of 21 million coins- ever. A dramatic entrance into the crypto-space was a guarantee when the shiny, new Bitcoin Diamond fork appeared. It tossed out the old limit of 21 million, and increased that amount 10 fold. That is correct, they chose 210 million BCD to be their upper limit.

Bitcoin Diamond Has a Higher Maximum… So What? What Else Can BCD Do?

While reading through the documentation written by the creators of BCD, there are four identifiable issues or problems that BCD claims to resolve.

1. Weak protection of privacy

2. Slow confirmation of transactions

3. Increasing demand on a network that needs scaling to accommodate the users

4. Following SegWit without increasing block size enough to make a difference

According to the BCD home page, these four perceived problems are addressed in the following manner: 

1. BCD introduced code that hides the amount of coin being transferred from peer-to-peer, thus adding more privacy to the chain.

2. Speedier transactions because of a higher maximum daily transactional limit on the network, and by increasing block size.

3. Higher daily transactional limits and utilizing an algorithm that the BCD miners claim is optimized, called X13 (GPU), means more users can hop on the chain train without clogging the network.

4. The block size in BCD blockchain transactions are quadruple the capacity of the original Bitcoin protocol-from 1-2 MB per block, up to a more practical 8 MB per block.

At the time of writing, BCD has the following storage of value: 1 BCD currently equals BTC ฿0.00203.  Refer to the historical chart found on CoinMarketCap.com to compare Bitcoin to Bitcoin Diamond over the course of its short life, so far.

Bitcoin Diamond In Exchanges and Wallets

It is tempting to automatically dismiss certain altcoins and forks off of the beloved, original Bitcoin, but BCD is acceptable as a tradable coin and a storable currency in a growing number of reputable exchanges and wallets.  Some of the exchanges that list Bitcoin Diamond include Okex, HitBTC, Binance, CEX, YoBit, KuCoin to name a few.  Wallets hosting Bitcoin Diamond include QoinPro, BitGo, BitPie, Mobi plus and many others.

Even though there a large number of products and companies supporting Bitcoin Diamond, there is really no guarantee that it will be a successful crypto in the long run. That’s because the crypto-market and crypto-technology are still in their infancy, and many things still need to be drastically improved.

Therefore, the best course of action, at this time, would be to carefully watch the crypto space, and learn as much as one can about how this technology works. It’s quite possible that the crypto-technology we are using today will help pave the way for much better crypto-platforms in the future, as more research and development goes on in this sector.