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Hard Fork: What Happens When a Cryptocurrency Splits In Two?

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Forks may be initiated by developers or members of a crypto community who grow dissatisfied with functionalities offered by existing blockchain implementations. They may also emerge as a way to crowdsource funding for new technology projects or cryptocurrency offerings. So I don’t think this case is really all that strong for some of the reasons that we’ve already talked about.

As for developers, they can just be ignored by the users. If you’re new to cryptocurrency, you may have heard the term “fork” thrown around. Like a fork in the road, a cryptocurrency fork is a point at which there are two paths for a blockchain’s development. When a split occurs, everyone on the blockchain receives as many cryptocurrency units in the new currency as they held in the old. Since these changes are so radical, they  alter the fundamental rules of the blockchain, taking the protocol in an entirely new direction.

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Sometimes he shoots off rockets, and they explode, and he leaves a lot of debris in the wake, and that’s the way I end the book, which is there are going to be some explosions. And as you have written about quite a bit, what used to be known as Twitter is not a beautiful sight. And the whole Bari Weiss story and the hypocrisy of banning those journalists, that’s all in the book.

I don’t think that getting rockets and electric cars justifies really bad behavior. But I do let the reader decide because these strands, the dark strands in Musk are interwoven into the fabric. And if you pull out one of those strands, hard fork maybe you don’t get the whole fabric, which as he says, even the best are molded out of faults. I think maybe for my final question, I’m just curious of the degree to which you think that his current life and lifestyle are sustainable.

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Dispute, debate—these are inextricable from a culture of openness, transparency and decentralization, meaning that a community rather than individuals controls a currency. This was the goal that motivated Satoshi Nakamoto to publish the Bitcoin whitepaper in the first place. Noelle Acheson is the former head of research at CoinDesk and Genesis Trading.

hard fork

A hard fork essentially creates an entirely new currency as it is a permanent divergence from the previous version of the blockchain. One path will follow the new, upgraded blockchain and the other one follows the old path. The users of that particular blockchain can elect to upgrade and follow one path or not upgrade and stay with the other. At the same time, several enthusiasts were contemplating ways to improve the network’s transaction speed.

Types of forks

The Bitcoin Cash hard fork is the result of a rift in the developer community. The new currency, Bitcoin SV (BCHSV) will exist on a seperate blockchain. Users wanted faster transactions, so they proposed increasing block size and making block validation easier and faster. When the first block was created under these new rules, the original Bitcoin blockchain rejected it. Sometimes, a cryptocurrency splits to restore funds after hackers or other attacks compromise the integrity of the blockchain or make off with millions in cryptocurrency. A soft fork is essentially the opposite of a hard fork, whereby newly implemented changes remain backward-compatible with older versions.

A fork can also be caused by an attack on the network. Sometimes, a fork may happen if multiple blocks have similar heights. Note that this kind of thing happens a lot in open-source projects, and has been happening for a long time before the appearance of Bitcoin or Ethereum. However, the distinction between hard forks and soft forks is one almost exclusive to the blockchain space. Not all hard forks are the result of irresolvable disputes among crypto developers and miners.

A hard fork is a significant change to the protocol that effectively removes backward compatibility from the blockchain. The blockchain is, quite literally, at a fork in the road. The general rule for this type of fork is that you will not be part of the new network if you don’t upgrade your software. Of course, you may rumble on as part of the old blockchain protocol, but that in itself may also require a soft fork to keep functioning. For those running older software versions, soft forks shouldn’t cause any issues because those blocks and transactions should still be accepted within the chain. Since soft forks are less disruptive that a hard fork, soft forks are generally much preferred.

hard fork

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