How Bitgesell Plans to Improve the Bitcoin Blockchain
Bitgesell is a lightweight blockchain based on proven Bitcoin code. It has several deflation parameters and scarcity. This blockchain also uses smaller block sizes which help speed up the network. Additionally, 90% of transaction fees are destroyed and halved once a year.
Bitcoin was the crypto that made many people explore the world of digital currency. It played a crucial role in making the cryptocurrency industry what it is today, but that doesn’t mean it’s flawless. As the cryptocurrency industry grows, new cryptos have been developed to improve on the areas where Bitcoin failed. An example of cryptocurrencies like this is Bitgesell.
The Bitgesell name was taken from a popular German economist named Silvio Gesell. He believed that most economic issues could be solved if money were only used as a medium of trade rather than as a store of value. Gesell argued that if money had a shelf life and lost value over time, people would feel more inclined to use it and even lend it to others without additional fees. This will increase the value of the economy. His approach serves as the foundation for Bitgesell, which aims to improve the Bitcoin blockchain.
What makes Bitgesell different?
This project is a cryptocurrency ecosystem that aims to improve the problems faced by Bitcoin. It uses an advanced version of Bitcoin’s codes to improve the user experience.
These are the main factors of the Bitgesell blockchain;
1) Block size – The block size of the Bitgesell blockchain is 10 times smaller than the block size of the Bitcoin blockchain. The project aims to create a dynamic block size that is a unique approach to the situation. This approach causes the block size to adjust according to usage, which is an effective way to balance fees on the network.
2) Reducing supply: The Bitgesell blockchain destroys a portion of the fees paid for transactions which in turn reduces the circulating supply and promotes scarcity. Bitcoin’s supply is constant, but Bitgesell’s supply is gradually decreasing. This feature helps the coin work well as a store of value.
3) Annual halvings: Bitcoin halvings happen every 4 years, but Bitgesell halvings happen every year. This will speed up the coin distribution process. By 2024, about 98% of BGL would have been mined, which compared to Bitcoin’s 2037 is very impressive.
The perfect block size has been a topic of discussion over the years. The first bitcoin forks used different block sizes or timings for different reasons. For example, Bitcoin Cash has a block size 32 times larger than BTC. Given that 90% of transaction fees are burned in the Bitgesell network, block size is even more important.
This means that if blocks are mined at less than full capacity, it does more than just reduce fees, it also means that almost no supply is burned. Likewise, when the block is congested, transactions compete with each other to enter the block, causing fees to increase and increasing the Bitgesell coin burned.
Use of blockchain fluctuates over time. There are times when transaction volume is high and other times when it is relatively low. This will continue to change in the long term as network adoption increases. The total transaction volume increases with network adoption, making it quite difficult to predict anything in absolute or fixed numbers for the perfect blockchain bandwidth.
Introducing a variable block size that depends on a few parameters is one way to solve this problem. It will control blockchain bandwidth depending on transaction activity that will make it part of the network consensus.
The Bitgesell blockchain will contain unique features that will set it apart by miles from most blockchains in the industry. It has a reduced block size, ever-decreasing supply, and annual halvings give it the edge it needs to succeed.
