bitcoin hd

What is Bitcoin HD and BHD Wallets?

By Rithik Panwar, January 22, 2020

Bitcoin HD (BHD) is a new type of cryptocurrency based on the proof of capacity algorithm.

It uses an improved version of the mining system cPOC (Conditioned Proof of Capacity) with a perfect economic model and a consensus algorithm. BHD uses a hard drive as a consensus participant, which significantly reduces energy consumption.

Bitcoin HD mining removes entry barriers, and the token generation process becomes more decentralized, more secure, and more reliable.

Unlike the POW (Proof of Work) algorithm, cPOC mining saves energy, is considerably lower in noise, and cannot be accelerated by implementing the ASIC chip.

Ultimately, this means that Bitcoin HD crypto based on the cPOC mining process can finally fulfill Satoshi Nakamoto’s original intention – anyone can be a Crypto miner.

How Bitcoin HD differs from others?

Users can use their hard drive’s unused capacity to mine bitcoins without running expensive mining equipment and other types of specialized equipment.

Traditional mining machines are energy-intensive, noisy, generate a lot of heat, and specialize in surpassing ordinary people’s abilities. With BHD, mining is easy and affordable.

Similar: Bitcoin Mining Guide

POW-based mining is primarily based on raw data processing and power generation. In contrast, POC mining in BHD is much more energy-efficient. It reverts to the original idea of Satoshi Nakamoto, who dreamed that crypto mining should be decentralized and done by ordinary people.

The POC algorithm is only analyzed once every few minutes. For the rest of the time, the hard drive is in energy-saving mode and has only negligible energy consumption, which significantly reduces energy costs.

BHD is based on the POC algorithm and will support multiple blocks in the future and add new functions such as zero-knowledge proof.

SSDs are expensive, but the POC algorithm doesn’t need fast data processing, just capacity. This means that POC naturally eliminates the need for specific ASIC chips.

The amount of energy used in POW global mining currently exceeds total energy production in 159 countries.

However, the development of digital currencies should not be based on wasted resources. For BHD, POC calculations can be carried out with minimal use of computing and energy resources.

Technical Specifications

  • Block size: 8 MB
  • Block generation time: 5 minutes
  • Replay protection: Two-way protection
  • Total volume: 21 million units
  • Developer team share: 2.1 million units (10% pre-utilized)
  • Promotion team share: 1.05 million units (5%)
  • Mineral extraction rate: 17.85 million units (85% for minerals)
  • Block initial value: 25 BHD per block
  • Cutting the reward per block in half: Every four years
  • Initial Transaction Rate (TPS): 70 transactions per second

Why does Bitcoin HD share data architecture with Burst?

The BHD, cryptography development team, aims to build a mining structure that lowers energy costs and protects the environment.

Using burst data, “fence” data enables BHD development without additional power or hard drive capacity. Such a system offers enough time to develop other “plot” formats and file storage schemes while ensuring network and transaction security.

Is it possible to mine BHD and Burst simultaneously?

Yes, there is a possibility to extract this crypto on a double mine basis, with the burst crystals being removed for 4 minutes, and BHD, it’s 5 minutes.

This difference is introduced so that the miner can mine the two cryptos at the same time.

Is Bitcoin HD an open-source project?

Yes, BHD is an open-source project. The cPOC algorithm’s code is currently being improved and will be utterly open-source after its final implementation and stable functioning.

Similar: Free Bitcoin and Altcoin earning methods

What is the difference between Bitcoin HD electronic wallet and traditional Bitcoin wallet?

The BHD crypto development team’s primary goal is to address the cPOC code’s shortcomings and the underlying file storage code.

The Bitcoin wallet code finalized in this development phase can shorten the time for code management and increase system security.

Compared to the Bitcoin Wallet, the following optimizations are associated with BHD:

  • Block size increased to 8MB / block
  • Block extraction time set to 5 minutes
  • Initial reward for using the block set at 25BHD / block; and the block gets bigger
  • A single block can contain multiple transactions, which increases the transfer rate
  • Block time reduced by half, which speeds up the transmission
  • Block initial value: 25 BHD per block
  • Halve the reward per block in half: Every four years
  • Initial Transaction Rate (TPS): 70 transactions per second

Objectives of BHD and IPFS (InterPlanetary File System) conflicting?

BHD’s purpose and vision are not to preserve content. Instead, broad participation in the ecosystem of digital crypto names and consensus-based mechanisms is sought.

Bitcoin HD will focus on the cryptocurrency system as a store of value, while IPFS’s vision is to create file storage and distributed content system.

What do you think?

Leave a Reply

Your email address will not be published.