This week, BitcoinHD (BHD) confirmed the group submitted a listing application to Coinbase. Importantly, the submittal comes on the heels of the company filing with the SEC a ‘Form D – Notice of Exempt Offering of Securities’ on March 30th to host a Security Token Offering (STO) .
BitcoinHD – BHD
It’s surprising to learn that BHD mined its genesis block in 2018. Notably, the token entered the market following the end of the hard fork debates and the entry of a host of new Bitcoin spinoffs to the market. Specifically, BHD developers wanted to push for more decentralization through the use of technological upgrades to blockchain technology. Importantly, BHD differs from its ancestor, Bitcoin in some key ways.
BHD has a 2MB blocksize which is double the block size of Bitcoin. This puts BHD’s blocksize in line with other famous hardforks like Bitcoin Cash. Also, BHD developers increased the block generation rate to every three minutes versus every 10 minutes. The upgraded capacity provides the network with transaction speeds 10x that of the original Bitcoin. Specifically, BHD can handle 70 transactions per second (tps) using the new protocol. In comparison, Bitcoin handles 7 tps.
Conditional Proof-of-Capacity (CPOC)
One of the most unique aspects of the BHD project is the integration of a new consensus mechanism known as Conditional Proof-of-Capacity (CPOC). CPOC differs from the traditional PoW strategy employed by Bitcoin in some major ways. For one, the new mining mechanism relies on cryptographic passwords located on validator hard disks to reduce power consumption.
Recent reports reveal Bitcoin’s huge apatite for energy. Bitcoin uses an estimated 61.76 terawatt-hours (TWh) of electricity per year. This energy usage equals more than many countries. In fact, its approximately 0.28% of total global electricity consumption. Critically, the CPOC consensus mechanism is far more eco-friendly than any PoW algorithms in the market.
BHD – Built for Decentralization
Another main concern for developers was decentralization. Bitcoin’s mining sector continues to experience more hard fork debates every year as the hashing rate increases. This centralization is the result of a combination of factors. These factors include rising mining equipment costs, larger mining pools, and better ASIC mining equipment. Together, these items create a perfect storm and make it nearly impossible for a normal Bitcoin user to host a node with any success.
Importantly, developers built BHD from the ground up with decentralization as its core principal. The CPOC consensus mechanism is resistant to ASIC mining efforts. Developers boast that the blockchain enjoys increased speed, security, and breadth of consensus thanks to the protocol upgrades.
Now, BHD developers seek to get their unique coin into the hands of the masses. According to the listing application, BHD seeks to become a part of the Coinbase network. Importantly, Coinbase is both the largest Bitcoin broker and the largest exchange in operation in North America. The platform currently has 30 million registered users and over $1 billion in crypto under management.
A New Strategy
Given that BHD uses less power, creates less noise, no heat, and is anti-ASIC, it’s not hard to imagine this coin making some headway in the market. As the first SEC-approved security token to receive a listing on Coinbase, BHD could enjoy a large boost usage. For now, like so many other hard forks sharing the Bitcoin name, only time will tell if the cryptocommunity warms up to the idea of another Bitcoin in town.