A Short Guide to Bitcoin Forks

fork, silverware

If you have been paying attention to bitcoin at all lately, you may have noticed a lot of talk going on about ‘forks’.

Not like the kind you would find on a table, on a blockchain, a fork is a technical event that occurs because diverse participants need to agree on common rules.

At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward — either with regard to a network’s transaction history or a new rule in deciding what makes a transaction valid.

As a result, those who use the blockchain have to show support for one choice over the other.

Yet, there are many different types of forks, and the science of studying them is still new. So far, we know some forks resolve on their own, but others, fueled by deep rifts in a community, can cause a network to permanently split, creating two blockchain histories — and two separate currencies.

Along with that, there has also been confusion about the various types of forks, how they get activated and the risks they pose.

To clarify, we’ve assembled quick rundown on how different forks work.

The basics

Before we

Read more ... source: CoinDesk

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