A new cryptocurrency based in Dubai could overtake Bitcoin in terms of consumer usability, its creators have claimed.
Bithereum (BTH) is a coin that is created via forking the Bitcoin (BTC) blockchain. It will eventually function as a peer-to-peer (P2P) electronic cash system similar to BTC, however it will fuse with the ultimate vision of Ethereum to create a superior currency centered around ‘Proof of Stake’. A fork is an upgrade to the Bitcoin protocol. Currently, Bitcoin isn’t scalable for widespread adoption and also has higher transaction fees in addition to slower transaction processing speed.
“Bithereum will bring together the best aspects of all prior Bitcoin forks, while also revolutionizing Bitcoin mining. The company selected Dubai, known as the city of the future, as its headquarters, because of the city’s growing involvement with the blockchain technology framework across various verticals. Dubai also aims to become the first blockchain powered government in the world by 2020 which is a great milestone for the industry,” stated Sachit Singh, Founder, Bithereum.
The current Bitcoin mining method, known as ‘Proof of Work’, requires high up-front costs, excessive energy consumption, and a monopolization of the mining efforts. ‘Proof of Stake’, BTH’s creators claim, is a transaction validation method that makes the blockchain network faster, more efficient, and cheaper to run.
They suggest combining the visions of Bitcoin and Ethereum, Bithereum will ultimately revolutionise mining, improve scalability, and increase network consensus.
Since Bithereum will start out as a direct descendent of Bitcoin, all Bitcoin holders will be able to claim their Bithereum coins in the same way they would with any other hard fork of Bitcoin. Though Ethereum and Bitcoin transact on entirely different blockchain with completely dissimilar address spaces, Bithereum will introduce a mechanism that will give both Bitcoin and Ether holders the ability to redeem Bithereum.
This would be regardless of which chain their holdings reside on and would involve minimal work for each holder.
“Bithereum will be a coin that benefits both chains, becoming the first hard spork of its kind. Bitcoin will first be hard forked to make changes to the protocol that will allow it to be a more technologically-advanced form of peer-to-peer currency. On the other hand, Ethereum will be hard spooned by taking a snapshot of the existing account balances of Ether holders to reward them in Bithereum. As BTH utilizes a significant portion of Ethereum’s vision, unlike all of the other Bitcoin forks, we will also be awarding all Ether holders with coins, giving them the ability to stake their coins in the future as well,” added Scott Wade, Co-Founder, Bithereum.