Bitcoin hard fork: What exactly it is?
Nov 01, 2017 Posted / 5375 Views
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.
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.
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.
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.
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.
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 .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.