Bitcoin Diamond (Bitcoin Diamond) is operated by the Bitcoin Diamond Foundation. It is a fork coin of the Bitcoin block. The new bit series chain, and produce bitcoin diamonds. Bitcoin diamond miners will use the new work verification algorithm to start creating blocks, and will gradually add functions such as transfer privacy protection to the original features of Bitcoin, which will lead to a fork of Bitcoin.

The original Bitcoin blockchain will continue to remain unchanged, but a new forked chain can fork off from the original chain. The new fork is the same transaction history as Bitcoin up until the fork, and then produces unique blocks from which it was forked. This process will give birth to a new cryptocurrency, we will call this new Bitcoin fork chain Bit Diamond.

Project Highlights

First, privacy protection:
By adding the function of encrypting the transfer amount, Bitcoin Diamond protects the transaction privacy of participants, making the entire transaction ecology 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, which is more flexible to handle each All transactions in a block, and continue to use segwit, which improves the utilization of unit blocks for storing transactions.

Third, reduce the transfer fee and user participation threshold:
The total amount of Bitcoin diamonds is 10 times that of Bitcoin, which reduces the user's unit participation cost and threshold to a certain extent. And the high handling fee has been diluted, and users can complete a transaction with less handling fee, making it easier for more users to participate in Bitcoin Diamond trading activities.

Technical Analysis

1. Segregated Witness

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 block of Bitcoin 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 to avoid congestion of transaction channels.
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.

2. Lightning Network

The Lightning Network is a decentralized system. The excellence of the Lightning Network is that it can realize a real-time and massive transaction network without trusting the other party or a third party. The Lightning Network evolved based on the micropayment channel, and creatively designed two types of transaction contracts: the serial expiry revocable contract RSMC, and the hash time-locked contract HTLC. RSMC solves the problem of one-way currency flow in the channel, and HTLC solves the problem of currency transfer across nodes. 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.
Give an example to help everyone 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 many people queuing up, so the bank will be congested, and people will start to dislike the slow transaction speed 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 the settlement, you can withdraw the money from Alipay. At the bank, the transaction is complete. Bank branches, on the other hand, only need to record two transactions. This is the working principle of Lightning Network, which can solve various problems of the original Bitcoin network.
Bitcoin Diamond uses Lightning Network to increase transaction speed, improve chain scalability, and improve user experience.