What is Bitcoin Diamond? Everything You Need To Know
Bitcoin Diamond (BCD) came about after the early 2018 Bitcoin fork. BCD is a currency focused on private transactions, which puts it in the same grouping as other privacy coins out there such as Monero, Zcash and Verge.
What is Bitcoin Diamond?
Bitcoin Diamond is a fork of Bitcoin with the objective of reducing the size of transactions. The old chain has a 1MB block size limit while the new chain has a 2MB block size limit. How is Bitcoin Diamond Different? Bitcoin Diamond has a smaller block size than Bitcoin. When creating a Bitcoin Diamond transaction, the miner is tasked with finding a private key for a certain number of coins. Bitcoin Diamond mining has significantly less decentralization than Bitcoin. The miner is responsible for looking up the private keys to create a transaction that moves a number of bitcoins from the address of the buyer to the address of the seller. BCD creates a wallet that has a small private key. Bitcoin Diamond is also designed for more privacy features.
What Makes Bitcoin Diamond Different from Bitcoin?
Because Bitcoin Diamond is focused on private transactions, the network isn't very scalable. Since there are a limited amount of addresses that can be assigned to a BCD address, the protocol has to be more creative in how to assign addresses to users in order to keep the network secure. To solve the scaling problem, Bitcoin Diamond utilizes faster hashing algorithms than Bitcoin. While Bitcoin is using SHA-256 and Bitcoin Classic is using Scrypt, Bitcoin Diamond is using Hashing Algorithms such as HMAC-SHA-512 and X11. While these hash algorithms won't directly speed up transactions for BCD, they are being put to use to improve how the transactions are verified on the network.
Also read :- How To Mine Litecoin: A Complete Guide
Why Bitcoin Diamond?
Private Transactions Many of us are still used to dealing with an over-crowded marketplace where our information and spending is exposed to a wide range of middle men before being stored on a server somewhere for processing and delivery to the final recipient. We have paid for goods or services before with cash or other similar fiat currencies and we’ve experienced the same results. Sometimes the transaction is completed as advertised, but many times the delivery is delayed. Bitcoin Diamond (BCD) provides a convenient way for customers to transact with each other without exposing that information to anyone outside the transaction, so to speak.
How to Buy Bitcoin Diamond
There are no stores or exchanges that allow you to buy BCD. To purchase your coins, you will need to purchase them through the Bitcoin Diamond Web Store. You can purchase BCD with USD or a EUR currency, or by redeeming an BCD balance on any cryptocurrency exchange. Your BCD wallet will be in the name of your Bitcoin wallet address. To convert your current BCD balance to Bitcoin, go to your bitcoin wallet address and click ‘Coin Balance’. Then in the Bitcoin Diamond Shop, click the ‘Deposit’ link and you will be directed to your BCD wallet address where you can transfer your current balance to Bitcoin. How to Get Bitcoin Diamond Coin Shed – a community-based exchange with a strict escrow policy. They have very friendly rules regarding the transfer of funds to your wallet.
Conclusion
Bitcoin Diamond does seem to have a market and price that is trending in the right direction. BCD is also approaching its promised timeframe and could move forward from here. I would recommend reading some of the recent reports out there before pulling the trigger.