Bitcoin Gold (BTG) was launched in 2017 as a hard fork of Bitcoin, aiming to restore decentralization to the mining process by switching Bitcoin’s SHA-256 algorithm to Equihash. This change was intended to make mining accessible to more individuals, as Equihash is optimized for GPU mining, which is more accessible than the specialized and costly ASIC miners used for Bitcoin. By allowing anyone with a standard GPU to participate, Bitcoin Gold promotes a more decentralized network, upholding the principles of Bitcoin’s original vision.
In addition to democratizing mining, Bitcoin Gold implemented security and usability features, including replay protection to prevent accidental transactions on the wrong chain and a unique address format to avoid confusion with Bitcoin addresses. BTG’s ecosystem includes support for the Lightning Network, enabling faster transactions and second-layer solutions for scalable and efficient payment processing. This framework also supports side chains and smart contract functionality, enhancing BTG’s capabilities beyond simple peer-to-peer transactions.
Despite its innovations, Bitcoin Gold has faced security and public relations challenges, including a 51% attack and a controversial post-mining event where 100,000 BTG were pre-mined to fund the project. These measures, though initially controversial, have helped sustain development, maintain decentralization, and support BTG’s goal of creating a transparent and accessible Bitcoin alternative.
