Bitcoin gold, lightning network and much more-learn advanced basics of Cryptocurrency- Part 1
India has more than 50 million unemployed people as of last year’s stats. While a great portion of the youth simply fails to pursue the career it wants, the other part includes aspirants finding various ways to earn well in a short time. In such a jamboree of professions and failures, it is quite obvious that we love jobs that Realte to assets like bitcoin gold, bringing us money quickly.
The answer-Bitcoin.
The word is as exciting as your favorite movie release on an OTT platform. While watching videos, we do love the way money-making advertisements thrill and engage us. We do want to try out the share market or the bitcoin criteria to make tons of money in a single month.
Needless to say, Bitcoin has acquired the interests of millions of users in the country who want to know more about it. Worry not as we shall tell you some interesting aspects of bitcoin and the industry.
Bitcoin is a platform where online transactions happen with digital money. This could be related to sharing market or currency exchange or even forex trading. Bitcoin is virtual money that is converted into real money once it’s transacted to or from our network. The Bitcoin platform allows traders from all across the world to guess the trend in the market and then earn money while taking a part of the profit as a transaction fee. There are various aspects involved such as trading timings, market votalitiy, forex bots, brokers, automated trading, etc.
Lightning network
This is a system that allows people to perform transactions with minimum transaction fees. The main idea of this network is to keep users off the main networking protocol. The Lightning network further enhances the ease of Bitcoin so that it can be used as a day-to-day currency.
Purpose of Lightning network
The main purpose of the lightning system is to let Bitcoin users develop a personal channel of payment amongst the parties that are involved in that particular transaction. These channels and gateways serve as the best payments sent or received with less waiting time.
The waiting time is reduced because here the transactions are occurring without the usual wait. The transaction records are kept, yet not finalized in the process. A few moments later, a notification is sent to the Bitcoin network in which the network acts as a usual transaction. This notification message consists of details related to the final balances created.
The lightning network was created to reduce the message number that Bitcoin has to process over its block. Through this system, only the urgent messages get converted into final smaller messages. These are included in the blockchain. The messages are in the form of entries in chronological order. A huge number of entries together make up the blockchain.
Is the Lightning network better than Bitcoin?
Lightning networks might provide a good method in which transaction fees are reduced within the main blockchains, Bitcoins and several other solutions offer the ease of scalability and hence are still considered more relevant.
The Segwit from bitcoin still offers a methodological alteration in the blockchain done by eradicating the signature from the block and then adding to another block. The signature remains the private key and might act as an essential aspect of the transaction. By eradicating the transactions, plenty of space is saved which further results in a greater increase in the speed of the transactions.
When comparing the Bitcoin to Lightning network, the Bitcoin might solve the purpose, but lacks the speed and accuracy. Also, the scaling issue that emerges every time in Bitcoin is beginning to be reduced now. This way, the Bitcoin price has dropped especially when compared to Bitcoin Cash. This means that the biggest cryptocurrency is making efforts to become more effective. One example is the increase in block size to make it up to 8MB for instant transactions.
Bitcoin Gold
Bitcoin Gold is an important branch of the Bitcoin blockchain. Its miners are expected to initiate creating blocks through a proof of work algorithm. The original Bitcoin block-chain would continue unaltered, however, a new branch is expected to spring out of the original chain. The new blockchain that would be created later on would be a distinct blockchain with more or less the same transition history.
This investment platform has been marred by various kinds of controversies. Initially, the BGT development team issued a statement to the media the wallet was illegally modified by some unknown party long after being originally published. They, later on, changed the statement after it became clear that the website was not hacked in any way and it was only the developer who broke all the communication with the team. Some of the users also claimed that they used this platform only on November 12 when Bitcoin gold’s mainnet was officially launched.
Salient features
Bitcoin Gold’s official website lists some of the features that distinguish it from the rest of the others. The BTG has come up with a new proof of work algorithm that renders all those hardware obsolete that is specially designed for mining Bitcoin. In this way, this platform presents an equal opportunity for all the individual miners who otherwise would not have dared to stand against the whales of the Bitcoin mining community.
Technical specification
By using this investment platform you would be receiving the exact amount of Bitcoin Gold as Bitcoin you hold at that block. This business is planning to adopt very strong replay protection and so you need not worry much about the replay attacks. Most probably, you will have to download a wallet or do your transactions manually to be able to use your Bitcoin Gold Tokens effectively.
Bitcoin mining pools
With a list of pools available, it becomes distinctly visible to use the pool that has a good hashing power percentage in the Bitcoin network. In other words, it is essential to use a pool that can mine a high number of blocks. The hash rate means the variance rate over time is lower over time.
If you choose a pool that has a small share of hash rate, you are taking the risk of block mining with low efficiency. In these pools, it becomes difficult to pay users which increases more complications. The profit factors also take into account the consistency of the execution of the payment. Hence, you need to choose a pool that has a good reputation for delivering better profitability.
Reputation
In the ecosystem of cryptocurrency, the transactions are done on the grounds of trust. Hence, it is important to select the options that enjoy the best reputation in the market. This means that you should choose the bitcoin mining tool that offers consistency of service, good up-time, fewer flaws and responsibility for payments. Mining in a well-reputed pool ensures the stability of transactions. It also helps the user become a part of the loyal users’ community with which they can grow the pool and collaborate on technical discussions.
Transparency
Along with reputation, transparency is the factor that plays a major role in choosing the best bitcoin mining tool. Various pools promise to provide certain statistics such as mined blocks per hour, workers’ performance and the total hash rate of the pool. However, these stats are not always subjected to a review or check for legitimacy.
Keeping the aspect of transparency in mind, the Slush Pool decided to introduce a single bitcoin mining pool where all users can check the efforts made by other miners connected. This check could be done every hour. Another feature “Hash rate pool” was introduced. This feature ensured that each user gets appropriate profit based on the calculation of the precise has a rate that his ASICs bring to the pool for each mined block. This technology enables the bitcoins mining pool to become transparent.
Conclusion
The industry of Bitcoin is growing exponentially, despite the restrictions by the government. The traders and the community is working meticulously on scalable solutions with robust technological solutions. This denotes that the cryptocurrency with flexibility feather in its cap will determine its fate in the country in the future. And unless it becomes an easier thing to pursue, it’s always in your interest to know about it, study it more and be ready when things are ready to take off.
Author: abhishek tuteja
Content writer with sky in eyes and nature in heart, living life learning each lesson per day.
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