Changelly is watching cryptocurrency development closely as the year 2020 is going to be rich for blockchain events like BTC halving, the launch of new coins, and forks. We’ve already met Steem hard fork, Hive, and there are more splits to come.
Different blockchains require different types of forks and sometimes, a fork changes the network dramatically. We are going to discover what is behind hard, soft, and temporary forks and see the most important forks that happened in the crypto industry.Forks: Basics
To show better performance and provide you with new features, applications in your smartphone require updates from time to time. In the blockchain industry, such upgrades call forks.
To be able to produce blocks, miners must reach a consensus regarding the blockchain state. Once participants of the network fail at reaching the consensus, a fork can be proposed as a solution that will resolve the conflict.
A fork happens for several reasons:There is no consensus between participants of a network; A blockchain requires critical updates.
Bitcoin is an open-source technology, which means anyone can see and use its source code. When interacting with the source code of a particular blockchain, one may start to develop it on his own. In this case, a completely new blockchain will be conceived, yet it will share the same genesis block (the first block of the chain) as the initial blockchain.
Example: Bitcoin Cash, Bitcoin Gold
Litecoin (LTC) is considered to be another Bitcoin fork. However, it would be correct to say that LTC forked BTC source code, as Litecoin and Bitcoin do not share the same genesis block.What Is Temporary Fork?
When several miners discover one block at the same time, a temporary fork occurs. It is important to note that a temporary fork can be created once an un-updated node verifies blocks created by updated nodes and vice versa. The result of such a performance is a s...