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Bitcoin hard fork: What exactly it is?

Nov 01, 2017 Posted /  5604 Views

Bitcoin hard fork: What exactly it is?

There has been a huge news coverage and developments in recent weeks about the alterations and changes to the digital currency networks. These are often called forks.

What is a fork?

Basically a fork is a change to the software of the digital currency that creates two different versions of the blockchain with a shared history.
Forks can be a temporary, lasting for a few minutes, or it can be a permanent split in the network creating two separate versions of the blockchain. When this happens, two different digital currencies are also created.

Why are changes made to digital currency protocols?

Most of the digital currencies use open-source software protocols with independent development teams responsible for changes and improvements to the network, much in the same way that changes to internet protocols which allow web browsing to become better over time.

Why do forks happen?

There are many reasons why a fork can happen. For instance when a change is proposed to a digital currency protocol, users need to show their support for the new version and upgrade , in a similar way to people regularly update applications on their computer. In order for these changes to get approved many people need to agree, just as changes to cellphone networks require many phone companies to agree.

What will happen after the bitcoin fork?

If bitcoin gold is embraced by users, it could become a serious contender in the cryptocurrency space. But if bitcoin gold's supporters switch back to the original blockchain, it could simply wither away. Bitcoin gold will only have value if traders use it.

What are the experts saying about the fork?

There are differences of opinions within the bitcoin industry as to whether a fork is good or bad.
"These forks are very bad for bitcoin. Saturating the market with different versions of bitcoin is confusing to users, and discredits the claim that there are a limited number of bitcoins, since you can always fork it and double the supply," Sol Lederer, blockchain director at Loomia, said in an emailed statement Tuesday.
But some have said forks are a good part of any cryptocurrency ecosystem.
"If a crypto-community has irreconcilable differences, then you can go your separate ways and that is just fine," Bob Summerwill, chief blockchain developer at Sweetbridge, a company creating blockchain solutions, said in a statement Tuesday.
Still, there is bullishness around bitcoin. A survey carried out by CNBC last week asking where the bitcoin price was headed found that 49 percent of the 23,118 people who voted answered "above $10,000."

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: hard fork bitcoin Cryptocurrencies Bitcoin Gold Bitcoin fork digital currency blockchain

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