What Is Bitcoin Diamond? Everything You Need To Know About BCD

Launched in November 2017, Bitcoin Diamond (BCD) is a Hard Fork of Bitcoin that aims to deliver faster transaction times  akin to Bitcoin SV. To do that, it uses a larger block size, which determines how many transactions can be processed per second. For Bitcoin, that's 1MB, whereas Bitcoin Diamond has a lot more bandwidth at 8MB. 

Just like Bitcoin itself, Bitcoin Diamond utilizes the Lightning Network, a protocol that's installed on the Blockchain to expedite transaction times, so that funds arrive in real-time. To make that happen, the Network processes transactions outside the Blockchain, then runs them back through the Blockchain for a final Confirmation.

Related: What Is Bitcoin SV?

The increased block size limit, however, is what enables it to process transactions at a faster rate — it means more transfers can be processed at once and Blocks can be created five times faster, thus resulting in lower transaction fees. Then again, that could also be due to the fact the demand for Bitcoin Diamond is somewhat minuscule.

Identifying that the cost of participation in Bitcoin is far too high (around $11,000 for Bitcoin, at the time of writing) due to a limited amount of coinage available, Bitcoin Diamond is available in larger quantities — the supply is 210 million, which is ten times more than that of Bitcoin, with 40 million of that reserved for Mining and Tributes. 

Should You Use Bitcoin Diamond?

In short: No. Just as is the case with Bitcoin SV (and most Altcoins, for that matter), Bitcoin Diamond has a number of potential advantages that make it a suitable Bitcoin competitor — on paper, at least — but in the real world, where computation, market cap, usage and adoption are the most important factors, they're no match for Bitcoin. 

Want to learn more about Cryptocurrency? Check out our Beginner's Guide.