Bitcoin Gold was a hard fork of the original open-source cryptocurrency that happened on Oct. 24, 2017. Hard forks happen for a number of reasons, like when a cryptocurrency’s customer base grows or when developers have different goals and are at odds with each other. However, Bitcoin Gold’s stated goal has been to “make bitcoin decentralized again.” Bitcoin Gold was one of the biggest and most talked-about changes to bitcoin.
At first glance, the idea of “making bitcoin decentralized again” might seem like it goes against common sense. Bitcoin is designed to be decentralized, just like all other cryptocurrencies. It is not tied to any central bank, country, or government body.
One of the most important problems with bitcoin, which led to the creation of Bitcoin Gold, had nothing to do with the question of central issuance. It had more to do with how the mine worked. Developers of Bitcoin Gold thought that by using a new algorithm for mining (in this case, a “proof-of-work” algorithm called Equihash-BTG), the new branch of the world’s most popular cryptocurrency by market cap would not favor large mining operations too much.