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Decentralized Finance (DeFi) began with Bitcoin (BTC). And while many wish to get BTC, its high value makes it challenging. However, a new Bitcoin fork known as Bitcoin Spark (BTCS) is making waves in DeFi, with analysts suggesting it presents an opportunity akin to buying BTC at a dollar.
What is a Bitcoin fork?
A Bitcoin fork is a modification of the underlying codebase of the Bitcoin protocol, resulting in the creation of a new digital currency with a distinct set of rules and features. A Bitcoin fork can either be a hard or a soft fork. Hard forks involve changes that are not backward compatible, meaning a separate blockchain is created. Soft forks introduce backward-compatible changes that allow the old version of the blockchain to coexist. Bitcoin forks have become popular because they enable users and investors to engage in different versions of the Bitcoin ecosystem.
How to invest in DeFi
To invest in DeFi, you first need to get familiar with the basics. Learn the core aspects, such as liquidity provision and yield farming. Next, you’ll need a cryptocurrency wallet that allows you to store, send, and receive digital assets securely. After this, acquire cryptocurrencies from reputable crypto exchanges, and you can now start investing. Make sure to thoroughly research different DeFi projects before making an investment.
Bitcoin Spark: The evolution of Bitcoin
Bitcoin Spark is the latest Bitcoin hard fork. It retains only the best attributes of its predecessor, such as a capped supply of 21 million coins, while introducing changes that solve its limitations and usher in a new era of use cases.
The Bitcoin Spark network will have a drastically increased number of nodes, reduced block time, and enhanced transaction capabilities per block. This ensures it has significantly improved transaction speeds and reduced fees.
The Bitcoin network lacks any in-built use aside from being a peer-to-peer transaction system. Bitcoin Spark solves this through various methods, including having a smart contract layer seamlessly integrated into its network. This layered architecture will include different execution systems that allow for the use of both high and low level programming languages. Bitcoin Spark is therefore poised to have a wide range of decentralized applications (dApps) serving many use cases.
Bitcoin Spark also solves the Bitcoin mining juggernauts. The network uses a novel consensus mechanism that combines elements of Proof-of-Work (PoW) and Proof-of-Stake (PoS, known as the Proof-of-Process (PoP). The PoP requires miners/validators to stake on the network and contribute the processing power in order to validate blocks and earn rewards. However, Bitcoin Spark combines the PoP with an algorithm that reduces rewards per additional stake and power exponentially to ensure a more equitable distribution of resources. Bitcoin Spark’s development team will offer an application that can be installed on Windows, Linux, Mac OS, iOS, and Android and enable users to mine by permitting access to their device’s processing unit.
The Bitcoin Spark application will work in a virtual environment separate from the device’s operating system functions to ensure security. Miners will be able to select the number of device resources used for mining, although the app can automatically adjust the resources used to account for battery life, overheating, and simultaneous usage requirements. This approach ensures the work and power consumption for BTCS mining is relatively low, opening it up to anyone. By distributing block validation across many individual miners, the network promotes safety and decentralization, significantly reducing the chances of a single miner becoming too powerful, as seen in Bitcoin, where Antpool and Foundry USA (two BTC miners) combined can control more than half of the hashrate.
Bitcoin Spark boosts its utility while ensuring the energy used for mining has a valid purpose by renting out the contributed power to individuals or organizations conducting high CPU/GPU operations. The clients will pay with BTCS, which will be allocated to the mining pool. More revenue generated within the network supplements and reduces the BTCS minting rewards, causing the minting endpoint to move further away. Therefore, BTCS miners will remain profitable in the long run.
Some crypto watchers have suggested this new cryptocurrency has the potential to replace Bitcoin in the future. Its ICO (Initial Coin Offering) has already witnessed massive investments and is currently in Phase 3, selling BTCS at $2.00 and offering a 12% bonus.
For more on Bitcoin Spark:
Website: https://bitcoinspark.org/
