We couldn’t have started our article any other way, I hope you get the reference and I don’t sound like a complete fool.
“Bitcoin Cash is the top Bitcoin fork ever”
“Upcoming Bitcoin forks.”
“Bitcoin has seen 44 forks up till now.”
HOLD UP. What the fork is a fork??!
No, it’s not a kitchen utensil. Please let me explain it to you before you make a fool out of yourself.
Hello there! We’re back with another dose of crypto lingo and this time we’re forking! Forking is a rather easy concept to grab on to. Even if it isn’t we’re here to help. So, as we are all aware that blockchain is a distributed ledger which means it’s a way of storing information in a decentralized manner. Bitcoin is a blockchain that makes use of it. It is a digital currency running platform which is implemented using many software’s and this software is called Bitcoin protocol. To ensure smooth sailing of any software they need to be updated for fixes and bugs. While some of these upgrades might be for small, sometimes they really end up changing the way Bitcoin is going to work.
But since the blockchain technology is a decentralized platform, this means that no one person or even a group gets to have all the say. It needs t to be granted approval by everyone each time. A fork usually happens when people disagree with the direction it’s taking. They could disagree to any change being implemented, for e.g., they could refuse the update because it might reduce their profits. If a group is so dissatisfied then they can create their own version of a protocol and ‘fork’ the blockchain. Imagine all the times you hated the new update and wanted to go back to the previous look so BADLY. It happened to us on Snapchat are we’re all still reeling from it pretty much.
So, to do this you can start by copying the Bitcoin protocol because it is an open source. Then you pick a time when the blockchain will be active. So when for e.g., block 560 is reached the blockchain becomes active. Some may choose to support the original blockchain while others can be part of the forked blockchain, depending on their preference. So all the transactions that happened on the original blockchain are also copied, this means if you had 10 Bitcoins on the original blockchain then you’ll have 10 new Bitcoins on the forked blockchain too! People call this free money but it all depends if the new blockchain attracts value later.
There are two kinds of forks; hard fork and soft fork. A hard fork occurs when the fork is made incompatible to the original if however, you make changes compatible then that means it’s a soft fork.
So now you know what a fork is and as crypto continues to grow, more and more fork will be there as more people will have disagreements. It all comes down to the success of the forked blockchain.