Bitcoin

Bitcoin Fork Addresses and Improves Bitcoin Flaws

To survive in the trading or mining world of bitcoin, one must be familiar with the technical challenges related to the emerging cryptocurrency else it may result in vital loses. Such is the issue of bitcoin forking which is something important to its users making investments. Bitcoin forking along with its types impacts current and future investors so exploring forking becomes a necessity.

Bitcoin fork is when a new code is launched using the bitcoin base source code and additional features are built on top of it to make bitcoin more scalable and add a network or user-level modifications to it. The prime example of cryptocurrency forking is when ethereum got split into two.

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One of the forking types, a soft forking means that changes are made to the additional implementation of blockchain to handle more transactions or make them faster. In this case, all the previously existing blocks and the hosts are backward compatible and can easily adapt to the change in the codebase.

Another type, hard forking is when a currently existing cryptocurrency is split up into separate versions of blockchains with a share of hosts being part of the original version and some being contributing to the new one like bitcoin and bitcoin cash.

Normally when the blocks start getting congested, a fork is the need of the hour so that new transactions can be recorded at a faster rate. While Bitcoin has block sizes of 1MB, bitcoin cash with larger blocksize was created to assist the users.

The most notable point for the bitcoin holders is that with every fork they get an equal number of share of the new crypto as they have for the original one for example on the creation of bitcoin cash, users holding 1 BTC were awarded an additional 1 bitcoin cash. It is up to the end-user to choose from either one of the platforms.

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One cannot say that bitcoin forking will stop anytime because it is just a gradual process to make the currency better for the consumer. However, it is general speculation that the forked currency will not go beyond the value of the original bitcoin but may have different valuable use cases for small enterprises.

So, the investors should have a general awareness of why a particular fork is needed and what the new version is doing better than the last one. One can expect a bitcoin fork anytime if a particular group of individuals is ready for a new set of rules for a new set of blocks and hosts to address a business problem at hand.

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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