When Bitcoin emerged in 2009, the original vision was to solve the problem of peer-to-peer transactions on a global scale without intermediation. But as simple as the concept sounds, the original Bitcoin code may not have accounted for certain economic and technical overhead. For example, when there are a lot of transactions on the network, they result in a surge in fees and congestion, thereby defeating the objective of speedy transactions when compared to legacy solutions. As a matter of fact, a recent report suggested Bitcoin’s fees surged by as much as 2000% in the first five months of 2020.
The Quest for ‘Digital-Gold’
Despite several reiterations that have since evolved, forking from or build on the original Bitcoin idea, all still leave a lot to be desired of the ultimate decentralized digital gold, as the same problem still persists in one form or the other. However, crypto asset BitGesell may be onto something to change that narrative soon.
The BitGesell project was started sometime in March/April by an entity known as EmmaWu on Bitcointalk.org, claiming to restart the Bitcoin blockchain. It proposes a truly decentralized and open source software by calling on prospects to join forces in developing the core aspects of the protocol. The name was coined after famous German merchant and theoretical economist Silvio Gesell, who had radical economic theories similar to those fostered by the core messages of decentralization.
BGL is an experimental digital currency which uses the Keccak hashing algorithm for blocks and securely enables instant payments to anyone, anywhere in the world. BGL uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network. BGL Core is the name of open source software which enables the use of this currency.
Its primary incentives revolve around a transactional coin burning mechanism with a burn rate of 90% of tx fees to create a digital scarcity of the asset, a block weight of less than 400,000 which is 10 times smaller than Bitcoin, and it is 100% Segwit, which eliminates the problems associated with legacy types of transactions. BitGesell’s BGL currency should definitely appeal to blockchain’s value chain — miners, investors, and network participants.
It appears that the BitGesell project aims to contend with BTC as the true attribute for “digital gold”– a concept which resonates deep within the cryptocurrency industry, often depicted by Bitcoin’s limited supply and its economic model of halving miners reward every four years. However, halving on BitGesell occurs every year, scaling its economic design 4 times that of Bitcoin, leading to the faster unveiling of the future of Bitcoin.
Even though it’s still early days for the BitGesell project, its achievement so far can be considered monumental to its scale. These achievements include a small GPU miner provided by its rapidly growing community, alongside an explorer, and a community wallet which has been specified in the very first BitGesell block mined, that will receive funds to be distributed for further project growth. Further, mining software cutting across major operating systems to include: Mac, Linux, and Windows.
Its most recent achievement includes the listing of the BGL asset on the HotBit cryptocurrency exchange to trade against BTC, giving it access to over 540,000 registered users from more than 170 countries across the globe. As an exchange, HotBit has a total of 400 active markets and over $54 million in daily transactions, making it a considerably good start for the BGL coin in terms of market exposure as it sets out to carve out a unique niche for itself.