The proposed fork will create a new blockchain to trade the digital currency, but not everyone is convinced.

ByCharlie OsborneforBetween the LinesOctober 24, 2017 — 10:12 GMT (18:12 GMT+08:00)Topic:Innovation

Blockchain blockbuster: IBMs payment system is a first

The promise of digital currency is finally coming to maturity, IBM says, with its unique international payments network.

A new hard fork is due to take place imminently on theBlockchainnetwork to create Bitcoin Gold, a cryptocurrency intended to bring trading back to decentralized roots.

The split is due to occur on October 24, after block 491,406 is mined. At this time, the Bitcoin Gold (BTG) protocol will launch.

Meet the iPad, your work computer: These 10 apps make real productivity possible

The new Microsoft Edge: 10 rules to take control of your browser

So long, Sonos: Meet the open-source audio system that will never die

Amazon Echo Buds go on sale: Save $40 on the wireless earbuds

Weve had Bitcoin, Bitcoin Cash, and now Bitcoin Gold. In August, cryptocurrency traders were faced with thefirst Bitcoin network fork, which caused a chain split that made trading in Bitcoin and Bitcoin Cash possible.

At the time, users were warned to hold off trading as node disruption could result in Bitcoin being traded on an incompatible network, leading to lost funds.

No such disruption is expected for the Bitcoin Gold split, however. Instead, the new blockchain will be incompatible with the existing version of Bitcoin (BTC) after a snapshot is taken at the time of the fork, and mining machines will be limited.

ASICswill not be able to minethe digital currency, and the operators argue that this will help resolve present issues of decentralization.

By eradicating the use of powerful, expensive hardware required to mine Bitcoin, BTG aims to be more accessible to users worldwide. The cryptocurrency will be mined through the Equihash algorithm, which allows the average user to use their CPU power to mine. (This is thesame algorithm usedby cryptocurrency miners in websites if it sounds familiar.)

All owners of BTC will receive BTG at an exchange rate of one coin, per coin. Bitcoin funds will be untouched.

According to Coinbase, 100,000 Bitcoin Gold coins will be mined by the Bitcoin Gold team before the software is released to the public. The network will not be usable by the public until this code is released.

As the code cannot be reviewed, Coinbase wishes to keep the security of assets at the forefront, and so will hold off supporting the new fork — at least, for now.

Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public for review, Coindash says. This is a major security risk.

We will continue to monitor the development of Bitcoin Gold, and if its network proves to be both secure and valuable, Coinbase may decide to support it at a later date, the company added.

See also:JPMorgan calls Bitcoin fraud only for use by criminals and North Koreans

While Coinbase will not support the system for now, if support is added, accounts will be credited with Bitcoin Gold at a later stage. Either way, Bitcoin funds remain safe.

The idea of a Bitcoin-based cryptocurrency which can be mined with less powerful PCs is a tempting one. However, many are skeptical that the project will be a success.

As there is a time lapse between the fork and the public release of mining software on November 1, unless users remain interested, network activity and trading may suffer.

In addition, concerns have been raised related to the algorithm being used. Satoshi Labs CEO Marek Palatinusnoted on Twitterthat competitive GPU chips can be few and far between, and others noted that by using GPUs, the problem of centralization isnt solved — as it still can come down to power, type, and cost.

Trezor, a manufacturer of cryptocurrency wallets, willnot support BTGat the moment.

Bitcoin Golds codebase is, at the moment of the writing, incomplete, Trezor says. Most importantly, it lacks replay protection. For this reason, TREZOR Wallet will not support Bitcoin Gold yet, as it would endanger your bitcoins.

Poloniex, another exchange,will also not supportBitcoin Gold until the code is available for review.

Some interested parties on social media are calling BTG a scam; others claim the offering is innovation. It remains to be seen whether traders warm to the idea and make the latest fork a success.

At the time of writing, the Bitcoin Gold website is facing a distributed denial-of-service (DDoS) at a rate of10 million requests per minute.

Watch your Bitcoin vanish: Blockchain split may be imminent

You will need to tread carefully in the coming weeks to avoid your funds disappearing.

Bitcoin launches into space to boost trading worldwide

The cryptocurrency has left our shores to join the world of satellites.

Falcon bank offers clients Bitcoin, cryptocurrency trade accounts

Banking customers will now be able to hold and buy Bitcoin, but what does this mean for anonymity?

ByCharlie OsborneforBetween the LinesOctober 24, 2017 — 10:12 GMT (18:12 GMT+08:00)Topic:Innovation

FBI launches investigation into Pegasus spyware vendor over US citizen hacks

Hacker snoops on art sale and walks away with $3.1m, victims fight each other in court

Apple, Broadcom face $1.1 billion damages bill to resolve Caltech patent battle

Please review our terms of service to complete your newsletter subscription.

By registering, you agree to theTerms of Useand acknowledge the data practices outlined in thePrivacy Policy.

You will also receive a complimentary subscription to the ZDNets Tech Update Today and ZDNet Announcement newsletters. You may unsubscribe from these newsletters at any time.

You agree to receive updates, alerts, and promotions from the CBS family of companies – including ZDNets Tech Update Today and ZDNet Announcement newsletters. You may unsubscribe at any time.

By signing up, you agree to receive the selected newsletter(s) which you may unsubscribe from at any time. You also agree to theTerms of Useand acknowledge the data collection and usage practices outlined in ourPrivacy Policy.

How to stream the 2020 Puppy Bowl and Kitten Bowl online

Heres how to get your fill of furbaby cuteness on Super Bowl Sunday.

Burn, drown, or smash your phone: Forensics can extract data anyway

Even if criminals try to destroy the evidence, NIST finds forensic experts can still extract data from a damaged phone. This is how they do it.

BDO survey: US tech firms fear trade war and Chinese innovation

Tech company chief financial officers are bullish about their companys short-term futures but are distracted by numerous regulatory and data privacy issues. …

Valentines Day is on the way and you here you can find a variety of gifts that will not only lift the heart but can also be beneficial to health.

2020 predictions: 5 telling trends in 3D printing

Hype or new hope? Is 2020 the year 3D printing actually disrupts high-volume manufacturing?

Quantum computing has arrived, but we still dont really know what to do with it

Even for a technology that makes a virtue of uncertainty, where quantum goes next is something of a mystery.

Over 22,000 tax refunds garnished this fiscal year by ATO for robo-debts

Based off nearly 175,000 Centrelink debts between financial years 2017-18 to 2019-20.

Optus showcases 5G mixed reality sports streaming use cases

Mixed reality use cases relying on 5G can be accessed by consumers, but the infrastructure is still yet to come, Optus 5G head says.

Microsoft to show off HoloLens, edge computing services at Mobile World Congress 2020

Microsoft took the wraps off HoloLens 2 at MWC 2019. This year, HoloLens, AI, edge computing and autonomous computing all look to be on the MWC 2020 agenda. …