A fork is a kind of split in the blockchain. Such a possibility is created when the blockchain is converted into two different branches. Thorns come in two forms – one is hard thorns and the other is soft thorns. Here if we look at a hard fork, its main function is to introduce new rules for the blockchain and it is not compatible with any older blockchain. A soft fork, on the other hand, is the exact opposite of a hard fork, which can be seen as an update to an existing blockchain. Today in this blog we are going to tell you about four hardforks that Bitcoin Cash, Bitcoin Gold, and SegWit are about. Are you wondering about cryptos? Learn why is everyone talking about bitcoin and blockchain.
Bitcoin Cash (BCH)
Bitcoin Cash was introduced during the year 2017 as a hard fork. In a way, the main reason it was started was as a response to protocol updates done on the BTC platform and SegWit. It appeared to intend to increase the number of transactions that the network can be used to process. It has proved to be a viable solution, although it is not as secure as bitcoin, which is a concern. Bitcoin, as the most popular crypto, has more than 15 times as many full nodes as BCH, capable of providing a distributed network while maintaining greater stability and security. However, the tradeoff is one-way transaction confirmation time. When the amount of activity in the BTC network is high, transaction fees are high, which can result in longer confirmation times.
Bitcoin Diamond (BCD)
Talking BTC Diamond, it was removed from the BTC blockchain during the year 2017. However, the purpose behind this hard fork was to solve problems like slow transaction confirmation and lack of privacy. Also, one of its major distinctions is the total supply of coins, which is close to 210 million – 10 times more than BTC. They raised the exchange rate to balance this difference, which was close to 1:10. As a result, you would have been able to claim up to about 10 BCD for each BTC you owned at the time the fork happened.
Bitcoin Gold is made purposely to prohibit the system of mining which is known as ASIC i.e. Application Specific Integrated Circuit. These circuits were made for energetic and more efficient bitcoin mining. As per the statement accorded by the developers, the implementation of ASIC mining is successive to make it centralized among miners and hence resulted in by which several big known companies having control and leverage over the bitcoin direction. As per the BTG founders, a decentralized network can be more accessible from users’ points of view so that several people can mine bitcoin gold by using less powerful computing equipment as well.
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Speaking of SegWit, in a way, it is a protocol upgrade that is capable of changing the way data is stored. To know about SegWit2x, it is necessary to first understand what is the difference between soft and hard forks related to blockchain. A hard fork is an update to the blockchain’s protocol regulations. As such, it is considered a significant change to the blockchain’s code, capable of keeping all older blocks incompatible with the new chain created. As a result of a hard fork, the affected blockchain splits in two. Therefore, hard forks, if not fully adopted, split a cryptocurrency network in two. Additionally, if nodes, enough miners, validators, or other entities within the network propose, they may be able to force a blockchain split if they adopt a hard fork.