Bitcoin Private (BTCP)

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Bitcoin Private (BTCP)

What Is Bitcoin Private (BTCP)?

Bitcoin Private is a community-driven cryptocurrency that was developed in March 2018 from a hard split of Bitcoin (BTC) and ZClassic (ZCL). Rhett Creighton, who also established ZClassic, was the creator and primary developer. The final goal of establishing Bitcoin Private was to integrate ZClassic’s inherent privacy-rich characteristics with Bitcoin’s flexibility, security, and popularity.

Key Takeaways

  • Bitcoin Private (BTCP) is a community-driven cryptocurrency that was developed in March 2018 as a result of a hard split between Bitcoin and ZClassic.
  • The ultimate goal of developing Bitcoin Private was to integrate the ZClassic cryptocurrency’s inherent privacy-rich characteristics with the flexibility, security, and popularity of Bitcoin.
  • BTCP is being developed by a small group of enthusiasts, but there is no timetable or information available for the blockchain and coin’s public release.

Understanding Bitcoin Private (BTCP)

Instead of a typical blockchain fork, the goal of Bitcoin Private was to execute a “fork-merge” that included simultaneously forking the Bitcoin blockchain and merging with the Zclassic blockchain.

The fundamental procedure has been characterized as follows: “a ZClassic hard fork that merges the unspent transaction outputs (UTXO) of ZClassic and Bitcoin into a new blockchain named Bitcoin Private This implies that the Bitcoin addresses and quantities will be coupled with the ZClassic addresses and amounts.” 1

The combined blockchain, according to the Bitcoin Private whitepaper, was designed to enable two systems: visible and shielded transactions. 2 The blockchain, like Bitcoin, securely and openly stores the origins and destinations of all money and quantity values. The shielded transactions, on the other hand, encrypt these facts into a separate block segment, making them verifiable but difficult for other parties to read.

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To attract investors, BTCP is one of hundreds of futile efforts to upgrade, modify, or replicate famous cryptocurrencies.

This operation was designed to generate a fresh set of 20.3 million coins, with 700,000 reserved for mining. 3 The pre-mined 20.3 million tokens were then airdropped—sent to the wallets of Bitcoin and ZClassic holders to entice them to transfer to BTCP.

How Is Bitcoin Private Different from Bitcoin?

As Bitcoin grew in popularity in the mid-2010s, its fixed, tiny block size and sluggish block times led to difficulties with speed, cost, and energy use. Increased transaction volume resulted in increased costs and longer processing times, causing backlogs. It became clear that one of Bitcoin’s goals, to be a unit of trade, was not practical in its present form.

Furthermore, the emergence of power-hungry ASIC-based mining called into doubt Bitcoin’s decentralized ethos. Mining power became increasingly concentrated in the hands of a few professional mining corporations and mining pools. Blockchain technology innovations, like as the Equihash proof-of-work (PoW) algorithm, were designed to address this issue by restricting the cost-performance tradeoffs of ASIC-based mining rigs.

Although Bitcoin was designed to enable users to remain anonymous, transactions may be tracked. Furthermore, when paired with other sources of pseudonymous data, a person’s Bitcoin public key may be used to identify them.

Bitcoin Private aimed to address this issue by combining Bitcoin’s protocol with ZClassic’s privacy-enhancing features.

The entire currency supply for Bitcoin Private, like Bitcoin, was designed to be limited at 21 million. The first block reward was 1.5625 BTCP, with a block duration of 2.5 minutes and a block size of 2 MB. For mining, Bitcoin Private employs the zk-SNARKs privacy protocol and the Equihash algorithm, which provides a GPU-friendly proof of work method. 3

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Goals of Bitcoin Private

Combining the security of Bitcoin with a method to keep transactions secret sounded like a decent concept in 2017 and 2018. Bitcoin Private had a market valuation of roughly $550 million when it was began. However, it is not listed on exchanges as of February 2022.

From the start, Bitcoin Private raised multiple red flags: it pre-mined 96.6% of the total coins, leaving just 3.4% for mining rewards. It also attempted to capitalize on Bitcoin’s reputation and popularity rather than organically building its user base.

The principals wrote a statement on Medium towards the end of 2018, less than a year after Bitcoin Private was launched, revealing that a “bad actor exploited a vulnerability in the BTCP fork mine code.” This resulted in the creation of up to 1.7 million fraudulent “shielded” coins. As a consequence, the developers devised a hard fork to address the issue. 4

The BTCP plan came to an end in 2019 as passion and development waned. 5

The Future of Bitcoin Private

The Twitter account for Bitcoin Private is still live. Developers announced the acquisition of a private server on February 8, 2022, to assist reduce storage and development expenses. 6

Bitcoin Private promises in its most recent Medium article, dated June 16, 2021, that a new chain constructed by a single contributor would be unveiled. 7 It remains to be seen when and if Bitcoin Private will become a cryptocurrency competitor.

Is Bitcoin Private a Cryptocurrency?

BTCP is, indeed, a cryptocurrency. However, it is currently under development and has no set release date for the mainnet.

What Is BTCP in Cryptocurrency?

Bitcoin Private (BTCP) is an attempt at a fork-merge of the Bitcoin and ZClassic blockchains.

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How Do I Get BTCP?

As of February 2022, no credible cryptocurrency exchanges offer BTCP, and it cannot yet be mined, hence there is no method to get BTCP.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the author to do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site.

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