Project Overview
Bitcoin Diamond (Bitcoin Diamond) is operated by the Bitcoin Diamond Foundation. It is a fork of the Bitcoin block. The English abbreviation is BCD. After this block, a new chain of bitcoin series will be formed and bitcoin diamonds will be generated. Bitcoin Diamond miners will use the new work verification algorithm to start creating blocks, and will gradually add transfer privacy protection and other functions to the original features of Bitcoin, which will lead to the fork of Bitcoin.
The original Bitcoin blockchain will continue to remain the same, but a new branch chain can be split from the original chain. A new fork is the same transaction history as Bitcoin up to the fork, which then produces the unique block that forked from it. This process will give birth to a new cryptocurrency, and we will call this new Bitcoin fork as Bit Diamond.
Project Highlights
First, privacy protection:
Bitcoin Diamond protects the transaction privacy of participants by adding the function of encrypting the transfer amount. Make the entire transaction ecosystem safer and more private.
Second, improve the transaction speed:
Bitcoin Diamond will increase the size of the unit block to 8M and support each block size as a dynamic value, more flexible to process All transactions in each block, and continue to use segwit, which improves the utilization of storage transactions per block.
Third, reduce transfer fees and user participation thresholds:
The total amount of bitcoin diamonds is 10 times that of bitcoins, which reduces the user's unit participation cost and threshold to a certain extent , and the high handling fee has been diluted, users can complete a transaction with less handling fee, making it easier for more users to participate in the Bitcoin diamond trading activities.
Technical Analysis
Two kinds of information are recorded on the blocks on the blockchain, one is called transaction information and the other is called witness information. Transaction information indicates that someone transferred a sum of money at a certain time. Witness information is to verify the reliability of transaction information at a certain node and at a certain point in time.
In the Bitcoin network, two pieces of information are placed in one block, so that the small storage space cannot store much data. It is understood that the storage space of a Bitcoin block is 1M, which is not enough at all, so there will be transaction congestion.
So Segregated Witness was developed. Only transaction information is recorded on the block, so more transactions can be recorded and the congestion of the transaction channel can be avoided.
Bitcoin Diamond uses Segwit to increase the number of transactions carried by a unit block and reduce the storage space of the entire BCD network.
Lightning Network is a decentralized system. The excellence of the Lightning Network is that it enables a real-time, massive transaction network without trusting counterparties and third parties. Lightning Network is an evolution based on micro-payment channels, and creatively designed two types of transaction contracts: RSMC, which is a revocable contract with serial expiration, and HTLC, a hash time-locked contract. RSMC solves the one-way flow of coins in the channel, and HTLC solves the problem of cross-node transfer of coins. The combination of these two types of transactions makes up the Lightning Network.
The core of Lightning Network is to transfer transactions from on-chain to off-chain, so as to solve the problems of transaction congestion and slow transaction speed during the transaction process.
I will give an example to help you understand. If Bitcoin is compared to RMB, then the Lightning Network is Alipay, and the Bitcoin network is equivalent to a bank, and it is the only bank. According to the transaction speed of Bitcoin, this bank can process 7 transactions per second, but there are a lot of people in line, so the bank will be congested, and people start to dislike the transaction speed is too slow, and complain.
The Lightning Network appeared, which is equivalent to the Alipay we use every day. You transfer the RMB you hold to Alipay, and you can complete various transactions on Alipay. Finally, if you want to settle, just put The Alipay money is withdrawn to the bank, and the transaction is completed. The bank branch only needs to record two transactions. This is the working principle of the Lightning Network, which can solve various problems of the original Bitcoin network.
Bitcoin Diamond uses Lightning Network to increase transaction speed, increase chain scalability, and improve user experience.
