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Bitgesell is a lightweight blockchain that is based on proven Bitcoin code. It has more deflation parameters and scarcity. This blockchain also uses smaller block sizes which helps to speed up the network. In addition, 90% of fees for transactions are destroyed and halving occurs once a year.
Bitcoin was the crypto that caused many people to 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 is flawless. As the cryptocurrency industry grows new cryptos have been developed to improve in the areas where Bitcoin failed. An example of cryptocurrencies like this is Bitgesell.
The Bitgesell name was gotten from a popular German economist named Silvio Gesell. He believed that most economic issues could be resolved if money was used only as a means 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 spend it and even lend it to others without additional fees. This would increase the value of the economy. His approach serves as the foundation for Bitgesell, which aims to enhance the Bitcoin blockchain.
What Does Bitgesell do Differently?
This project is a cryptocurrency ecosystem that aims to improve on the problems faced by Bitcoin. It uses an advanced version of Bitcoin’s codes to enhance user experience.
These are the main factors of the Bitgesell blockchain;
1) Block size – The block size in the Bitgesell blockchain is 10x smaller than the block size in the Bitcoin blockchain. The project aims to create a dynamic block size which 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) Decreasing 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 reduces gradually. This feature helps the coin to function well as a store of value.
3) Yearly Halvings: Bitcoin halvings occur every 4 years but Bitgesell halvings occur every year. This would speed up the coin distribution process. In 2024, approximately 98% of BGL would have been mined which when 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 various reasons. For example, Bitcoin Cash has a block size 32 times that of BTC. Given that 90% of transaction fees are burnt in the Bitgesell network, the block size is of even greater importance.
This means that if blocks are mined with less than their full capacity, it does more than just reduce fees, it also means that almost no supply is burned. In the same way, when the block is congested transactions compete with each other to enter the block which causes fees to rise and increases the Bitgesell coin being burnt.
Blockchain usage fluctuates over time. There are times when transaction volume is high and other times when it is relatively low. This will continue to change over the long run as network adoption increases. The overall 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 is dependent on a few parameters is a way to solve this problem. It will control blockchain bandwidth depending on transactional activity which would make it part of the network consensus.
The Bitgesell blockchain will contain unique features that will set it miles apart from most blockchains in the industry. It’s reduced block size, constantly decreasing supply, and yearly halvings gives it the edge it needs to succeed.