Samuel Uwamusi
Oct 14 · 3 min read
Hard Forks In Cryptocurrency
In the context of blockchain technology, a fork is a major modification of the network protocol, which makes previously invalid blocks and transactions valid, and vice versa.Most software users know that updates and improvements can make their programs more efficient.
Blockchain is also based on such updates and improvemen t s.However, if centralized service providers can quickly update their software with new features at the push of a button, then decentralized applications such as Bitcoin on the blockchain require a separate, more complex application.For example, these are decentralized open source agreements that are not centrally managed.
Therefore, the decision to switch to the protocol requires the consent of all users on the network.If developers or members of the crypto community are not satisfied with the functions implemented by the existing blockchain, they can start a fork.
They can also be used to raise funds for new technology projects or cryptocurrency products.Fork is the only way to update or improve the blockchain.According to different uses, forks can be divided into soft forks and hard forks.
Forking is a change or improvement to the blockchain software protocol, which causes the main blockchain network to split.
For example, if a cryptocurrency is running on an old blockchain, a fork on that blockchain will result in the development of a second token on the new blockchain.
WHAT IS HARD FORK?
A hard fork happens while the policies of the blockchain protocol are up to date or altered in this kind of manner that the old and new blockchains are incompatible.This means that the old nodes will refuse to just accept the newly up to date blocks, and the brand new blockchain will feature below new policies so as to reject blocks from the old blockchain indefinitely.
This is referred to as a “backward-incompatible” software program upgrade.Some builders use hard forks for a whole lot of reasons, including while the Ethereum blockchain produced a hard fork opposite the Decentralized Autonomous Organization hack (DAO).
Following the breach, the Ethereum network almost unanimously voted in favor of a hard fork to opposite transactions that ended in an nameless hacker siphoning out tens of millions of dollars in digital currency.DAO token holders have been additionally capable of acquiring their ether (ETH) budget returned to the difficult fork.
The hard fork plans no longer absolutely unwind the network’s transaction history.
Rather, it moved the DAO’s coins to a freshly shaped clever agreement with the only purpose of permitting the authentic DAO to retain operating.
In the Bitcoin network, there has been a dispute over the quality manner to scale up the network.Those who sought to elevate the block length have been on one side.Others, on the alternative hand, have been in opposition to such reforms.
Later, those who desired to extend the block length selected the department to Bitcoin Cash, whilst the people that had been against such adjustments stayed at the authentic Bitcoin network.Both coins (i.e., Bitcoin and Bitcoin Cash) run on wonderful blockchains for this reason.In general, any replacement to a coin’s software program (as a minimum the ones which can be democratically managed like Bitcoin) calls for a few shapes of consensus..
