HomeUncategorizedForks and CopyCats: Bitcoin Zero, the "Triple Fork"

Forks and CopyCats: Bitcoin Zero, the “Triple Fork”

Cryptocurrencies have proven to an existing type of innovation. This new form of digital cash can transform global finance, albeit not everyone wants to see it implemented in the form of Bitcoin. 

The world’s leading cryptocurrency has been forked many times over, albeit most of these offshoots will not amount to much. Bitcoin Zero, while initially deemed exciting, is slowly disappearing into obscurity.

Bitcoin Zero and Anonymity

Whereas many people may think Bitcoin is an anonymous currency, that is far from the case. It is true that users can “hide’ their identities by sharing complex wallet addresses to send and receive payments. However, all of the financial information associated with that address can be seen in broad daylight, making it nearly impossible to hide one’s tracks. As a result, Bitcoin is pseudonymous, and not anonymous.

The Bitcoin Zero team decided to tackle Bitcoin’s concept from a completely different angle. They aim to focus on both anonymity and privacy, two crucial aspects when conducting payments online or in-person. The world’s leading cryptocurrency does not provide this option, unless one uses a wallet capable of enhancing user privacy.

The Triple Fork

The BZX developers took Bitcoin’s source code to make this new project happen. At the same time, they also borrowed code from Litecoin and Hexxcoin, albeit that latter project is now seemingly defunct. A lot of altcoin projects are abandoned by their developers after a year or less, primarily because they bring nothing new to the table. 

By combining aspects of all three currencies, Bitcoin Zero can be labeled as a triple fork. It combines the good attributes of these currencies in an effort to introduce privacy solutions everyone can benefit from. Its core features include the ZeroCoin protocol and Dark Gravity Wave for the mining aspect of BZX. 

The Primary Selling Points

Standing out as a new altcoin in this industry is extremely difficult. Bitcoin Zero’s focus on privacy and anonymity will only take it so far. To counter those concerns, the developers ensured the project would have other key selling points. 

Compared to Bitcoin, BXZ provides transactions that are a lot faster. Its block time is 1/4th of Bitcoin,s which allows for much smoother transactions overall. It is also a currency that, unlike Bitcoin and Litecoin, can’t be mined with ASIC hardware. Instead, it supports only CPUs and GPUs, making it far more accessible to enthusiasts globally. 

Other core features include the use of a hybrid proof-of-work algorithm to thwart attacks and the mining difficulty retargeting in multiple ways every block,  All of these features are not necessarily new in the cryptocurrency industry, but they can make for some interesting mechanics when put together.

The ZeroCoin Protocol and Technical Info

To achieve an acceptable degree of privacy, the Bitcoin Zero team implemented the Zerocoin Protocol. This allows users to either opt-in or opt-out of privacy and anonymity as they see fit.  

Those who seek complete anonymity have different ways of sending transactions, such as “third party spend”. That process gives users the choice as to where they want to spend the current BZX prior to reaching the destination address. 

The Zerocoin Protocol has often been criticized over its flaws and shortcomings. Implementing it in a cryptocurrency might seem like a risky endeavor. The Bitcoin Zero team has allegedly patched and updated this protocol to ensure no bugs remain in place. 

Overall, BZX has a maximum supply of 40 million coins. That supply is almost twice as high as Bitcoin’s, yet under half of Litecoin’s maximum supply. At this time, 20.573 million BXZ have been brought in circulation.

The Price Collapse

It is not uncommon for forked currencies to gain value during the first few weeks. In fact, it is a very common trend, albeit it is never sustained for too long. Bitcoin Zero is no exception in this regard. 

Its price peaked at $0.074 in late November of 2018. Ever since that time, the BZX value has been on the decline, with little signs of recovery. Today, one coin is worth just $0.002181, further indicating the initial excitement has tapered off significantly. 

In terms of exchanges, there are only four platforms supporting BZX right now. Those platforms include Crex24, Stex, Livecoin, and Sistemkoin. Of those four platforms, three of them have seen little to no trading volume. Even the largest trading pair fails to break $1,000 in volume more often than not.

Conclusion

It is good to see developers aim to improve Bitcoin. Creating a forked currency to do so is not necessarily the best way to go about it. Bitcoin Zero is almost seemingly on its last legs in this regard, as there doesn’t appear to be a large community behind it. 

If these “improvements” were used as suggestions for Bitcoin itself, they might have received a lot more attention. Right now, it doesn’t seem advisable to buy BZX in the hopes of its value going up in the months to come. 

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.
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