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What Is a BCD: a Complete Beginner's Guide (2021)?

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what is a bcd

While Bitcoin stays the father of cryptocurrency and the most expensive coin, there are many people who aren’t happy with it. And indeed, the Bitcoin blockchain faces a lot of issues the major of which are:

The speed of transaction processing: It is too slow.

Mining is too energy-demanding. Another problem with mining is that it can be performed by miner rigs and miner farms. Mining by individuals isn’t profitable anymore. 

Privacy issues: the public keys of wallets-participants of a transaction are open to anybody in the blockchain. So, a public wallet key can be theoretically tracked down to the wallet owner.

Many projects were trying to solve these issues. Some were developed from scratch while others just changed the Bitcoin code to form a fork. BCD, or Bitcoin Diamond, appeared in 2017 as a fork from Bitcoin. The project developers aimed at solving the issues the main coin started to face. 

BCD Made the Blocksize Bigger

BCD increased the block limit to enable faster transactions. While Bitcoin limits its block size by 1 MB, Bitcoin Diamond developers believe that this limitation is leftover from the past. The new coin’s block scales when the number of users increases. It helps to prevent having the blocks congested when the number of transactions grows. 

However, the block size of BCD is still limited to 8 MB. And the advertised speed of transaction processing (100 transactions per second) is still much lower than the transaction processing speed in newer networks. So, when you decide to change BCD to USDT, consider even the smallest details.

Lightning Network

The transaction processing speed in the BCD network is still significantly lower than by the majority of competitors. So, the coin creators had to think about how to improve it. With this aim, they have introduced the Lightning Network as a second payment layer to their blockchain. 

The network allows you to put a part of transactions off-chain instead of processing them in the blockchain. It is very convenient for multiple microtransactions. The blockchain verifies the final state of a transaction. It speeds up the process significantly. 

Accessibility of Use

While the Bitcoin platform is becoming increasingly expensive for everyday use (it means that the platform is becoming not accessible to the widest public), the BCD network is highly accessible. 

The BCD price allows everybody to purchase it. Therefore, the accessibility issue was solved in the network for sure.

Mining Was Changed, Too

Bitcoin Diamond removed the original SHA-256 mining algorithm by making mining more complicated for the owners of specialized equipment such as ASICs. So, the issue of mining decentralization is also solved in the new network. 

Bottom Line

While the BCD price is still far from the value of the main coin or even from the Helium price,  we shall admit that some efforts of the team have paid off. So, BCD is considered a significant improvement to Bitcoin, and it is expected that in the future, the demand for it will be increasing. 

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