Bitcoin is likely the cryptocurrency that has undergone more hard forks than any other. That said, each new hard fork still attracts interest. In this article we examine a recent Bitcoin hard fork: Bitcoin Private (BTCP). This fork brings several notable features to Bitcoin that deserve closer attention.
What is a hard fork?
A hard fork occurs when a single cryptocurrency splits into two separate chains. This happens through changes to the original cryptocurrency’s source code and results in an old version and a new version. This instance is somewhat unique because both ZCL and BTC served as parent blockchains for Bitcoin Private (BTCP). That means anyone who held ZCL or BTC in their wallet at the moment of the fork became entitled to BTCP.
When did the hard fork occur?
The snapshot — the recorded balances on the ZCL and BTC blockchains that were inherited by BTCP — was taken on February 28, 2018. The Bitcoin Private blockchain launched just two days later.
How do you get Bitcoin Private?
When the hard fork was executed, a snapshot captured all balances on the ZCL and BTC blockchains. Anyone who held ZCL or BTC in a compatible wallet or on a supporting exchange received BTCP on a 1:1 basis. For example, a holder of 15.4 ZCL and 0.1 BTC became entitled to 15.5 BTCP.
Who is behind Bitcoin Private?
Bitcoin Private is a community-driven fork built from the BTC and ZCL communities. The initiative brought together a team of more than 50 contributors. The project aims for transparency and community governance, inviting holders and contributors to participate in decisions about the fork and the future development of Bitcoin Private.
Bitcoin Private features
Privacy (Anonymity)
Bitcoin Private adopts the same zero-knowledge proof technology used by ZCash (zk-SNARKs). Transactions are recorded on a public blockchain while sender, recipient and other transaction metadata can remain shielded, preserving user privacy.
Decentralization
Like Bitcoin, Bitcoin Private enables peer-to-peer transactions without intermediaries. Transactions are validated by network nodes using cryptography and logged in a public ledger.
Speed
Unlike Bitcoin, Bitcoin Private supports slightly larger block sizes. This allows it to maintain transaction speed while offering enhanced privacy and security compared with some other Bitcoin-based currencies.
Open Source
The entire Bitcoin Private source code is publicly available for review and verification. It remains open source and is maintained by a growing community of developers.
Community-driven
True to its transparent and open-source nature, Bitcoin Private is developed by contributors distributed worldwide. Each team member has defined roles and contributes according to their skills.
A fair launch
There was no premine and no founder’s reward. Bitcoin Private was launched fairly: BTCP was distributed on a 1:1 basis to holders of Bitcoin (BTC) and Z-Classic (ZCL).
Conclusion
Bitcoin Private centers privacy as its main selling point — a feature that remains relatively uncommon among Bitcoin-based currencies. The project also includes replay protection, appears to be driven in good faith, and incorporates technical elements such as zk-SNARKs and slightly larger block sizes that could appeal to specific user niches. Its fair launch and community-driven development are additional positives.
That said, while Bitcoin Private is an intriguing hybrid, it is not obvious which market factors would propel it to widespread success. The technical merits and commitment to privacy are valuable, but in many ways BTCP resembles a community-led ZCash without founder fees (unlike ZEC, which allocates rewards to founders and developers). Whether the market will value those differences enough to favor BTCP over established privacy coins like ZEC remains uncertain.