What is Bitcoin 2?
Bitcoin2 is a Bitcoin fork that supports anonymous and instant transactions. The protocol was designed to solve the trilemma facing Bitcoin and other popular cryptocurrencies. It aims to achieve high scalability and faster transactions without compromising the security of digital assets.
Bitcoin uses the Proof-of-Work (PoW) mechanism, which is both resource-intensive and slow. On the other hand, Bitcoin 2 utilizes a Proof-of-Stake (PoS) consensus mechanism to facilitate faster transactions at a lower cost. It also uses the second-tier Masternode network to enable transaction confirmation within a second.
Bitcoin 2 uses a customized Zerocoin privacy protocol to enable anonymous transactions, thereby solving the lack of transaction anonymity Bitcoin and other crypto assets face. The protocol is called zBTC2. It uses zero-knowledge proofs to obscure the link between the sender and the receiver. Therefore, it enables 100% anonymity and non-traceable transactions. This technology makes zBTC2 tokens completely fungible, as they lack a determinable history attached to them. Additionally, it hides users' balances.
The key benefits of Bitcoin 2 include:
- Enables faster transactions, confirmed in less than a second.
- The transactions are private and untraceable, enabled by zBTC2 and Tor.
- It is a decentralized network, where any network member can contribute to the running of the network and earn income through staking.
- The network is energy efficient as it uses secure PoS that greatly reduces energy consumption.
- Bitcoin 2 has low fees, enabling near-zero transaction costs. Users can send money globally for less than a cent.
- It is highly scalable, supporting up to 40 times more transactions per second compared to Bitcoin.
Uses Cases of BTC2
Bitcoin 2 coin is mainly used as a medium of exchange. BTC2 is highly fungible and divisible. The denominations used by the network are 0.05, 0.20, 1, 5, 20, 100, 500, and 2000. This feature makes the token suitable for day-to-day transactions. Additionally, Bitcoin 2 crypto enables near-instant transactions, another important feature for a medium of exchange. Besides, users can stake the token to earn income for securing the network.
Bitcoin 2 price may fluctuate due to market condition changes. Research the token's price before investing. The data on the BTC2 price is displayed on the price chart.
Who Founded Bitcoin 2?
Bitcoin 2 is a community-centric crypto project. The token was launched in 2018. Unfortunately, there is little information about the founders of the project.
Tokenomics of BTC 2
On February 5, 2018, all Bitcoin holders received BTC2 on a 1:1 ratio. Users did have to take any action to receive the token. Therefore, the initial distribution matched that of Bitcoin at the time of the fork.
The maximum Bitcoin 2 crypto supply was set to equal that of Bitcoin (BTC) – 21 million BTC 2. The fixed supply means that Bitcoin 2 price may increase with the increase in demand, making it a better store of value than any fiat currency.
Additionally, the number of tokens can only increase by 0.5% to 1.2% per year until the total supply hits 21 million. This inflationary mechanism also ensures BTC2 price remains stable on a short-term basis.
