What’s Forking is ?
Every second person involved in crypto-market has heard this term and most of all are unaware of it. So, what literally Forking is?How and why the Forking is done? Answer of every question lies in this post.
Forking basically means any type of alteration that is made in the blockchain. This alteration can be temporary or it ca be permanent. This whole depends on the type of forking. Simply stating, forking is splitting of older chain into two branches.This forking is basically done by the developers or programmers in the algorithm or software of any cryptocurrency. This is divided in two parts. Hard-Fork and Soft-Fork, each one having its own purpose and goal.
Hard Fork is in actual, the change made by the developers in the old chain such that the transaction made in the previous chain will not be accepted any more. This fork is the permanent fork, implies that once it has been done no one can do transaction in the old chain and the new currency formed is then widely accepted by the community.
This creates two paths in the whole blockchain. One running along the oldest chain which is no longer accepted by the miners and other is the newly created path on which new transactions are made.This is only done when majority of the developers are supporting it.
In this fork, change is made to the algorithm such that the newly formed chain has to follow the new rules and old chain continue to follow old rules. Only majority of the developers who are supporting the fork have to follow it and the remaining will continue to work on the previous chain rather than changing all the nodes as was in hard fork.
Now coming to the bitcoin forks which are recently made and accepted by the major community.Bitcoin-Core has been forked into the following:-
- Bitcoin-Cash(BCH)-First fork of bitcoin which is widely accepted by majority of the developers. Roger-Ver (First BTC investor and the CEO of http://Blockchain.com) and all his employees are in huge support of this fork. The reason behind this support is obvious as it is faster than the older version and has low transaction fee.It is currently traded at 0.156098 BTC at Binance.
2) Segwit2x (B2X)-This project began in may 2017, but was actually forced to be implement in November on 18th.Since many developers were against it, so was cancelled on 8th November. Main idea behind this was to improve the scaling of bitcoin. Developers were opposing it because it was facing the problem of ‘Replay-Factor’ (this is main problem in the splitting of blockchain).It is being traded at Etherdelta, Yobit and HitBTC.
3)Bitcoin-Gold(BTG)-This is the recent fork of the original Bitcoin.It uses proof of work algorithm which is also known as “Equihash”. It is currently traded at many exchanges including Bitfinex, Bittrex and Binance.