Bitcoin Gold Project Is Being Met With Skepticism from Blockchain Community

We are less than two weeks away from the alleged hard fork project Bitcoin Gold. But as fork day nears, details about the proposed project remain sketchy.

What the Fork?

Earlier this week, Hacked.com reported that a group of cryptocurrency miners were planning to fork the bitcoin protocol on Oct. 25, a move that would benefit existing BTC investors by providing them with the newly minted coin.

The project, which is being led by Jack Liao of Hong Kong-based LightningASIC, is attempting to address the current challenges facing bitcoin miners. From the scant details we have received, the developers intend to open a trading exchange by Nov. 1.

However, numerous traders and market participants have uncovered sketchy details about the project, including an unfinished consensus algorithm and a lack of exchange listings anticipating the fork. The project is also facing heavy criticism on its Slack channel.

Red Flags

As Gert-Jaap Glasbergern notes, there are several red flags surrounding the BTG project. For starters, the proposed fork has not been publicized. Instead, the developers have indicated via Github that they will release the chain at a later date. Does this mean the developers will mine on the chain privately until launch day?

As of last week, the developers have already mined 16,000 blocks, which is equivalent to 200,000 Bitcoin Gold. Is this a plot designed solely to enrich the developers?

Also, there is no sign of replay protection being implemented yet. Replay protection essentially prevents users from bleeding coins before or after the fork.

Although the BTG project has responded to these concerns, many investors remain unconvinced. An investigation into the domain name revealed several “scammy” looking URLs tied to the same email address. An unfinished proof-of-work implementation and no change of difficulty algorithm have also been raised by investors.

The author continues to give Bitcoin Gold the benefit of the doubt – for now. However, it’s difficult to imagine that major exchanges and e-wallet services will support the newly minted currency under these conditions.

Featured image courtesy of Shutterstock

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Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi