What is the fork of a blockchain?
A fork is an event where the source code of an existing blockchain is modified and then split off as a new blockchain. The most popular fork is the Litecoin, which is based on Bitcoin’s original blockchain.
Here, the Bitcoin blockchain was copied and modified, so that the placement of Litecoin could be performed as a stand-alone project. Furthermore, forks are a complicated matter, because the network relies on all members to be compatible with the fork.
If this is not the case, for example, the miners or even the users share, so that the spread of the token decreases, even though the same number of users use the tokens.
Why are forks performed?
Basically, the idea of a blockchain is that the highest level of transparency is granted. This means that the source code is open-source and therefore accessible to everyone.
As technology evolves, changes to cryptocurrency properties are also required, as evidenced by minor changes or complete redevelopments. These changes are often published in the form of a fork.
It may happen that the community does not want to accept the features, and therefore, the old publication will continue to be used. Thus, from this point in time, two different cryptocurrencies are in circulation. Here, a distinction is made between hard and soft forks.
A hard ode is mandatory for the entire network, so all users need to use the new publication. A soft fork is a change to the protocol, which is also backward compatible. This means that even older versions of the software can interpret and use this new protocol.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.