BitcoinHD (BHD) is a cryptocurrency that aims to build an energy-efficient token and mining ecosystem. The platform’s primary goal is to provide a cryptocurrency that anybody can mine and use.
According to the whitepaper, BHD utilizes the CPoC (conditioned proof of capacity) technique. Proof of capacity is a consensus method technique used in blockchains that allows mining devices in the network to decide mining rights and validate transactions using their available hard drive space. This coin aims to significantly reduce energy consumption and entry barriers by leveraging a hard drive as a consensus participant. This, in turn, would make cryptocurrency mining safer, more decentralized, and accessible to everybody.
Existing mining procedures tend to be costly and consume a large amount of power. Thus, BHD introduces a mechanism for crypto zealots to create general apparatus while maintaining low energy consumption. Meanwhile, utilizing its consensus proof of capacity (PoC), BHD maintains a reasonably high difficulty level to ensure the system's stability. PoC consensus is ruled by low storage power. This method makes use of hard disks as a more economic consensus method. Consequently, more people should be able to construct system-stabilizing hash power with their own devices.
The whitepaper states that BHD inherited BTC's spirit. It claims that the new proof-of-concept mechanism is now in charge of providing a better future for cryptocurrency by including more people in the construction of the economic system. The whitepaper also claims that monopoly, centralization of processing power, high energy consumption, and the incompleteness of existing proofs of concept have emerged as critical issues in the crypto sector. Thus, BHD was created to aim to resolve these four primary issues.
BHD's consensus process is based on proof of concept, as mentioned earlier, and it secures the long-term development of the entire cryptocurrency by establishing a long-term incentive economic model. Simultaneously, it has made specific changes to the existing POC, which aims to solve the following issues:
