An Explanation Of Cryptocurrency Forks
There are two types of cryptocurrency forks: hard forks and soft forks. Hard forks: A hard fork represents a permanent divergence from the current version of a blockchain with nodes on the new blockchain not interacting with or acknowledging nodes or transactions on the old blockchain. Hard forks represent substantial change and create a new blockchain with no transaction compatibility between versions transactions on the old chain are not recognized on the new one, and vice versa. Nodes that continue running the old version of the software will see the new transactions as invalid. To mine valid blocks on the new chain all of the nodes in the network need to upgrade to the new rules. Soft forks: In contrast, a soft fork is said to be backward compatible in the sense that old transactions can be recognized by new nodes. Unlike a hard fork, non-upgraded nodes will still see new transactions as valid. However, if non-upgraded nodes continue to mine blocks, the blocks they mine will be rejected by the upgraded nodes. Therefore, soft forks need a majority of hash power in the network to succeed. When a soft fork is supported by only a minority of hash power in the network, it could become the shortest chain and get orphaned by the network. Forks can either be planned for and guided by the core development team of a project or be initiated by a group of developers dissatisfied with an element of an existing project. The latter is a highly contentious process for hard forks and tends to center around governance issues related to proposed solutions to problems like scaling. For a fork to be successful it is required that developers believe in the new approach and recognize it. In this way, forks are open source and democratic in nature. Forks are regularly proposed, take place Continue reading >>
Latest Bitcoin 'hard Fork' Causing Concern In Cryptocurrency Community
Latest Bitcoin 'Hard Fork' Causing Concern in Cryptocurrency Community This latest Bitcoin "hard fork" scheduled for today ismaking some in the cryptocurrency community uncomfortable. Jaap Terlouw is theperson behind this attempt toexecutea Segwit2x hard fork, which is not the same team behind the failed Segwit2x hard fork back in November. New cryptocurrencies areusually createdwhen there is a signal for a hard fork, which involves splitting the path of a blockchain whenthere's no consensus -- so a significant enough portion of nodes and miners continue to mine the old chain, thereby introducing a situation with two currencies . "Most of the exchanges are uncomfortable with the development work behind the Segwit2x hard fork -- the code itself as well as the experience of the team handling it," said Alexandre Tabbakh, the CEO of PUBLIQ, a blockchain-powered distributed media platform. Forks are serious stress tests for the whole Bitcoin community, which has to show unity and discipline to handle them successfully. Tabbakh explained that whenever Bitcoin survives these "little revolutions," it strengthens its status as the first and most reliable blockchain. "The experience and presence of the [current Segwit2x team] management team on the main Bitcoin forums are surprisingly weak," Tabbakh said, although he noted that Bitcoin "has encountered several forks and shakedowns in the past, but so far always came up stronger." On Thursday, Bitcoin was trading at $14,347, downmore than 8%from an opening bid of $15,378. There are already a number of variations of Bitcoin available created by previous hard forks, including the core Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin Gold (BTG). Sergei Sevriugin, CEO and founder Rega, a risk sharing platform, explained that the current Continue reading >>
In Terms Of Crypto Currency, What Is A Fork?
In terms of crypto currency, what is a fork? A hard fork in the cryptocurrency world is pretty controversial, it basically means that a potentially upcoming update will conflict with older versions. A lot of people say this isnt in the ethos of cryptocurrencies. So all the users would have to ensure they run the update. With a soft fork, quiet a lot of these have happened with cryptocurrencies. Specifically, these are updates to the protocol that dont conflict with the current version. An update here isnt mandatory by users. With cryptocurrencies as there decentralised forking is a little more tricky than it would be for a typical organisation, as all of those connected to the ecosystem such as miners have to agree on the decision that needs to be made. Only then can a fork occur. Were sitting on a park bench. Its a great day. I have one apple with me. I give it to you. My apple was physically put into your hand. You know it happened. I was there. You were there. You touched it. We didnt need a third person there to help us make the transfer. We didnt need to pull in Uncle Tommy (whos a famous judge) to sit with us on the bench and confirm that the apple went from me to you. The apples yours! I cant give you another apple because I dont have any left. I cant control it anymore. The apple left my possession completely. You have full control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend. And so on. So thats what an in-person exchange looks like. I guess its really the same, whether Im giving you a banana, a book, or say a quarter, or a dollar bill. Now say, I have one digital apple. Here, Ill give you my digital apple. How do you know that that digital apple that used to be mine, is now yours, and only you Continue reading >>
What Does Fork Mean In Cryptocurrency?
By: Sudhir Khatwani In: Cryptocurrency Last Updated: Often, the price of a cryptocurrency goes wild as and when it approaches the phenomenon called fork. Sometimes these wild rides can be positive while at times it can also go the other way. Irrespective of which way it goes, you can still make money if you play smart. Andif you have been in the cryosphere for a while, you must have witnessed quite a few fork events. I have witnessed a few forks which I can name when Bitcoin s price went on a wild ride. These forks were: But what is so special about these forks and why exactly are they called forks? <br /> Can't load widget<br /> Fork or Forking generally means a kind of software upgrade/update which is done in such a way that it can be backward-compatible or cannot be backward-compatible.(We will talk about compatibility further in this article). In short, Fork is just a fancy name for a software or a protocol update. Similarly, updating a cryptocurrency protocol or code is referred to as Fork. Forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network, depending on which type of fork is happening. In the realm of cryptocurrencies or blockchains, these forks are majorly of two types: Also, soft forks are known as backward compatible forks which are optional but the other type i.e. hard forks are not backward compatible and hence are mandatory to be applied. In the cryptosphere, any protocol change or software upgrade that makes old rules obsolete and uses the new code base as the driving force, is called hard fork.This type of fork is permanent and requires all nodes and users to upgrade to the latest version of the protocol software/wallets. This fork is not backward Continue reading >>
What Is A Bitcoin Fork?
A fork is occurs when two miners find a valid hash within a short space of time . They both spread the solution for verification to their neighbours. As the process continues the network will split into two, where one half of the network believes one block is the next to be included in the blockchain ledger , whilst the other half of the network believes in a different block. This problem is almost always resolved quickly, or within one block the probability of two blocks being found within two seconds of each other for two block rewards consecutively is very low. A one block fork occurs roughly once a week, whilst a two block fork occurs extremely rarely. The problem is solved by the part of the network that finds the next block, as this blockchain is then said to have more difficulty or higher complexity. The other part of the network will then make its blocks redundant and adopt the 2 blocks of the longer half of the blockchain. The block that it thought was the solution will then be stored in a pool as an orphan block. This is called blockchain reconvergence. This brings up an interesting problem with other crypto currencies, for example litecoin, where the targeted block time is set to two and a half minutes instead of Bitcoins ten minutes. As the block time is less with Litecoin there is a higher probability of blocks being solved within seconds of each other and causing a Litecoin Fork. This is the compromise between transaction confirmation and network forking for example Fastcoin with a block target time of less than thirty seconds will create a multitude of forks. Ethereum has got around this issue by using the Ghost protocol which rewards uncle blocks - blocks that are valid solutions but not included in the blockchain itself. Continue reading >>
Bitcoin Fork Explained - Business Insider
Bitcoin split in two in August when the digital currency officially forked creating Bitcoin Cash . Bitcoin gold was created when bitcoin forked again in October. And now the SegWit2xfork is looming. Meanwhile, bitcoin continues to hit new record highs . We asked Nolan Bauerle, the director of research at CoinDesk , to come in to help explain what exactly happens when a cryptocurrency splits and whether it undermines the strength of the coin.Following is a transcript of the video. Nolan Bauerle:I am Nolan Bauerle, the director of research at CoinDesk and here's what a bitcoin fork actually is. Sara Silverstein: So you're here to help me understand what exactly a bitcoin fork is. Bauerle: So to think of these blockchains in a very simple way we can see them as cryptographic keys that move memory. The rules by which the memory is moved are set by the miners themselves. So you've got miners that understand the rules and when you wanna change those rules you need to fork it. All the miners need to agree about the new rules about what is a valid block in the chain. Silverstein:It's just the majority of the miners that need to agree, right? Bauerle: Well, then you can have a fork where a certain minority believe that the truth and valid blocks are different and that's where you get into this area of forks which we saw this summer where you had a group of miners decide that different rules should apply to a valid transaction. So that persists as a different blockchain. Silverstein:So let's say all the chains have the same history and then there's two separate chains that have moved forward and both are valid? Bauerle: Both are valid according to the miners working those chains.So those miners in Bitcoin Cash from the summer decided that blocks should be much bigger, that every Continue reading >>
List Of Upcoming Bitcoin Forks
Over the year of 2017, there have been several forks in the Bitcoin blockchain, resulting in the birth of several new cryptocurrencies Bitcoin Cash , Bitcoin Gold , Bitcoin Diamond being some of the more prominent examples. Every time there is a fork in the Bitcoin blockchain, pre-existing Bitcoin holders will usually receive a similar amount of the forked currency in their wallets. According to CryptoCurrency Facts , a hard fork is when a single cryptocurrency splits in two. It occurs when a cryptocurrencys existing code is altered, creating a new version of the coin which will co-exist with the old version. Meanwhile, a soft fork is essentially the same thing, but the idea is that only one blockchain and thus one coin will remain at the end of the fork as users adopt the update. Thus, both fork types create a split, but a hard fork will result in two coins, while a soft fork will create just one coin. To put this into perspective, Segwit was a soft fork, Bitcoin Cash, Bitcoin Gold, and Segwit2x are all hard forks. This fork creates a smart contract-based Bitcoin (like Ethereum) Continue reading >>
Hard Fork Definition | Investopedia
As it relates to blockchain technology,a hard fork (or sometimes hardfork) is a radicalchange to theprotocol that makes previously invalid blocks/transactions valid (or vice-versa), and as such requires all nodes or users to upgrade to the latest version of the protocol software. Put differently, a hard fork is apermanent divergence from the previous version of the blockchain , and nodes running previous versions will no longer be accepted by the newest version. This essentially creates a fork in the blockchain, one path which follows the new, upgraded blockchain, and one path which continues along the old path. Generally, after a short period of time, those on the old chain will realize that their version of the blockchain is outdated or irrelevant and quickly upgrade to the latest version. A hard fork can be implemented to correct important security risks found in older versions of the software, to add new functionality, or to reverse transactions (as in the case with the hard fork to reverse the hack on the DAO (decentralized autonomous organization) in the Ethereum blockchain). A hard fork involves splitting the path of a blockchain by invalidating transactions confirmed by nodes that have not been upgraded to the new version of the protocol software. Following the hack on the DAO, the Ethereumcommunity almost unanimously voted in favor of a hard fork in order to roll back transactionsthat siphoned off tens of millions of dollars worth of digital currency by an anonymous hacker. The hard fork also allowed DAO token holders to get their ether funds returned to them. The proposal did not exactly unwind the networks transaction history. Rather, it relocated the funds tied to The DAO to a newly created smart contract with the single purpose of letting the original owne Continue reading >>
Guide To Forks: Everything You Need To Know About Forks, Hard Fork And Soft Fork
Guide to Forks: Everything You Need to Know About Forks, Hard Fork and Soft Fork Lets fork it up By Aziz, Founder of Master the Crypto No responses This is a guide to forks that will explain the most common questions: What is a fork, hard fork and soft fork? Why does it happen? How important is it? Forks are a common phenomenon in computing software and represent a technical term that escapes the understanding of many. In order to have a clear understanding of forks, we have to look at Bitcoin and its technology, as its creation spearheaded the cryptocurrency ecosystem. Bitcoin is a decentralized peer-to-peer payment network and currency. The underlying mechanism of Bitcoin is its software protocol, which constitutes a bunch of computing codes that serve as predefined rules for the network. One thing important to understand is that Bitcoins software is open sourced, whereby the underlying computing codes is free and available for anyone to view, inspect and use. (Read also: Guide to Common Crypto Terms ) The blockchain the technology underlying Bitcoin is a distributed ledger made up of blocks of data that is continuously growing, forming a single chain of blocks (hence block-chain). Since Bitcoin is a decentralized network, participants in the network need to agree on a common set of rules to validate the transactions, in order to achieve consensus. This, therefore, results in a single chain of verified data that everyone agrees is correct, or a single truth. (See also: Coins, Tokens & Altcoins: Whats the Difference? ) A fork occurs when the single blockchain splits into two, either due to: As Bitcoin is a distributed and decentralized network, a fork occurs when miners discover a block at the same time, resulting in two split chains. However, this is a temporary fork Continue reading >>
A Short Guide To Bitcoin Forks - Coindesk
If you have been paying attention to bitcoin at all lately, you may have noticed a lot of talk going on about 'forks'. Not like the kind you would find on a table, on a blockchain, a fork is a technical event that occurs because diverse participants need to agree on common rules. At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward either with regard to a networks transaction history or a new rule in deciding what makes a transaction valid. As a result, those who use the blockchain have to show support for one choice over the other. Yet, there are many different types of forks, and the science of studying them is still new. So far, we know some forks resolve on their own, but others, fueled by deep rifts in a community, can cause a network to permanently split, creating two blockchain histories and two separate currencies. Along with that, there has also been confusion about the various types of forks, how they get activated and the risks they pose. To clarify, we've assembled quick rundown on how different forks work. Before we get into the classifications, it's worth noting that bitcoin forks already occur quite regularly. A byproduct of distributed consensus, forks happen anytime two miners find a block at nearly the same time. The ambiguity is resolved when subsequent blocks are added to one, making it the longest chain, while the other block gets "orphaned" (or abandoned) by the network. But forks also can be willingly introduced to the network. This occurs when developers seek to change the rules the software uses to decide whether a transaction is valid or not. When a block contains invalid transactions, that block is ignored by the network, and the miner who found that block loses out on a block reward. As such, Continue reading >>
What Is A Fork In Cryptocurrency?
When it comes to cryptocurrency, there are a few types of forks, the hard fork and soft fork are the most common. So, if we simplify what exactly is a fork, we will come to a conclusion that forking is a state of change that happens to the software which forces the blockchain to split into the two chains. The original chain will continue as is and the new one will continue where it picked up, with the new software. In an electronic encrypted currency transaction, the coins and transactions remain encrypted in the public ledger written in blockchain program. Unlike bank transaction, in blockchain transactions the user can check and verify each transaction. Every transaction will have a digital signature confirming the authenticity of the transaction. Anybody who has access to a data coin program can change the code of a coin or can upgrade the coin which will help to flourish the coin. Most cryptos are open source and theyre listed on GitHub which can give you the ability to go check out the codes. This can help the average investor know a little bit more about it. Anybody who is trying to make changes or access the coin should be thoroughly competent to do the changes in the coin. A fork is a technical event that usually occurs because of a vast number of participants agreeing together on how the new program should work. A fork can happen anytime when two miners find a block at the same time. The doubtfulness or uncertainty can be removed by making it longest and one of the blocks will be abandoned or removed from the network. It happens in two situations. One situation is due to accidental fork when the coin update becomes incompatible. Using different versions of the software shall create two indifferent ledgers, which shall remain identically different from one anot Continue reading >>
What Does A Fork In Cryptocurrency Mean? For Example, What Does A Fork In Bitcoin Mean?
What does a fork in cryptocurrency mean? For example, what does a fork in bitcoin mean? There are actually two types of forks, a hard fork and a soft fork. A hard fork is a permanent divergence from the previous version of the blockchain, where a new set of consensus rules are introduced but are not compatible with the older network. Nodes on the network will need to be upgraded in order to validate the new set of consensus rules. A soft fork however is a backward compatible way of upgrading a blockchain. Soft forks do not require nodes to update in order to maintain a new set of consensus rules. To find out more about soft and hard forks, check out this Mycryptopedia article: In software engineering, a project fork happens when developers take a copy of source code from one software package and start independent development on it, creating a distinct and separate piece of software. In the context of cryptocurrency that simply means that the blockchain undergoes an update and all the miners switch to the new blockchain and start mining it. Do we always get new coins from a hard fork? No, this only happens if enough miners refuse to mine the new blockchain and stick with the old one which creates a chain split, this was the case with Ethereum Classic. Another scenario where a chain split can occur is when a new update or fork is proposed and miners start mining the new blockchain with the update implemented like the case was with Bitcoin Cash and possibly will be with Bitcoin Gold and Bitcoin SegWit2x. So a fork is simply a software update, when it comes to cryptocurrencies, new coins are only made when a chain split occurs. I hope my answer cleared everything up for you Continue reading >>
What Is Forking And How Does It Impact Cryptocurrencies Such As Bitcoin
Karnataka elections: Rahul Dravid to be state election icon In the world of cryptocurrencies, especially bitcoin, you will often hear the word forking. So far in bitcoin, two major forks have taken place, which have led to the birth of two cryptocurrenciesbitcoin cash and bitcoin gold. Yet another forking is expected next week. Lets try to understand forking and its impact. Forking happens because a set of miners, who create bitcoin, believe that there are more efficient options than the existing bitcoin. Forking implies a splitting of the chain on which bitcoin runs; making it go in a different directionwith different rules than the existing blockchain as the two would now have different visions of bitcoin. For example, bitcoin cash changed the block size, which means that blocks can be greater than 8 MB while bitcoin continues with 1 MB blocks. When the miners disagree with the existing rules of bitcoin, the blockchain forks or splits into two different blockchains which have different rules, said Sumanth Neppalli, cryptocurrency and blockchain analyst, Zebpay. There are two kinds of forking. Hard fork is a permanent divergence in blockchain. If a bitcoin hard fork happens, then it is possible that the older bitcoin blockchain will be scrapped in place of the upgraded one. This means that all nodesof miners, merchants and users will need to upgrade to the new nodes to be able to validate the new blocks. This is necessary as non-upgraded nodes will reject blocks created by upgraded nodes, said Benson Samuel, chief technology officer and co-founder, Coinsecure. In case of soft fork, there are only protocol changes and bitcoin continues to work on the original blockchain rules. According to Samuel, to date the following coins have or will soon emerge after software clie Continue reading >>
Overwinter Is Coming: Zcash Moves Closer To First-ever Hard Fork
Overwinter Is Coming: Zcash Moves Closer to First-Ever Hard Fork Mar 2, 2018 at 14:25 UTC|UpdatedMar 2, 2018 at 14:27 UTC Zcash has released new software in preparation for its first system-wide software upgrade. Dubbed"Overwinter" and set to activate in June, the softwarefinds zcash's developer team moving to fortify its technology in anticipation of future updates. Due to the nature of the code, which will be enacted via a mechanism called a hard fork, all users will be required to make the shift. According to a blog post announcing the new software, Overwinter will include "versioning, replay protection for network upgrades, performance improvements for transparent transactions, a new feature of transaction expiry and more." However, while the software implements newOverwinter rules, a further upgrade will be required when the precise block number has been finalized, the release states . Zcash announced last year that it would release a further update, Sapling, in September, which is set to reduce the storage required for private transactions, as well providing a newly secured update to the blockchain's underlying cryptography, zk-snarks. According to zcash forum posts , the zcash team has delayed the release of Overwinter several times, citing a need for extra time to review the software and fix bugs discovered during testing. As of Feb. 27, an employee wrote on the forum that the team's "manual testing of the release candidate" was still in progress. Disclosure:CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Zcash Company, the for-profit entity that develops the zcash protocol. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial pol Continue reading >>
Understanding Hard Forks In Cryptocurrency
Cryptocurrency Basics Understanding Hard Forks in Cryptocurrency Do you like our content? Or, do you want to test out a new wallet? Feel free to send some coins to one of our wallets public addresses. All donated funds will go toward improving the site. Is Bitcoin Cash Better Than Bitcoin? Bitcoin Shakes off Bitcoin Cash Drama to Break $8k Can Bitcoin Cash Become the Dominant Bitcoin? Beware Bitcoin and Bitcoin Cash Pump and Dumps; There is a War Going on Stop Dumping Bitcoin and Pumping Bitcoin Cash, There is Room For Two Coins Crypto Correction Spurred on By Bitcoin Cash Dumping Bitcoin For Bitcoin Cash? That Seems Slightly Insane. GBTC Trust Announces Plans For Bitcoin Cash Fork The content of this website is provided for informational purposes only and cant be used as investment advice, legal advice, tax advice, medical advice, advice on operating heavy machinery, etc. Our site is not officially associated with any brand or government entity. Any mention of a brand or other trademarked entity is for the purposes of education, entertainment, or parody. Neither CryptocurrencyFacts.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from CryptocurrencyFacts.com. In other words, this is a website on the internet offering free information about cryptocurrency, this is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice. See our about page for more disclaimers and information. Understanding Hard Forks in Cryptocurrency Hard Forks in Bitcoin, Ethereum, and Other Cryptocurrencies In simple terms: A hard fork is when a single cryptocurrency splits in two. It occurs when a cryptocurrencys existing code is changed, re Continue reading >>