By the end of the year, we could see a few more forks that will be carrying Bitcoin’s name emerge. The next split will be named as Bitcoin Gold.
What Is A Fork In Cryptocurrency
You may have heard of a Bitcoin fork that goes by the name of Bitcoin Cash a couple of months back, but what is a fork anyway?
There are two forks that you need to know of:
- Soft Fork
A soft fork is a change to the bitcoin protocol wherein only previously valid blocks/transactions are made invalid. Since old nodes will recognize the new blocks as valid, a soft fork is backward-compatible.
In other words, the new changes won’t affect the entire system that much.
- Hard Fork
A permanent divergence in the block chain, commonly occurs when non-upgraded nodes can’t validate blocks created by upgraded nodes that follow newer consensus rules.
Or in other words, the changes are permanent and if somehow or rather your previous wallet is not registered on this hard fork; your virtual money is gone forever without any trace.
Bitcoin Gold Is On The Way
We already have B Cash which went live on August 1st, and so far it has succeeded in the transition by the way of a hard fork. Now there’s another split coming soon, by the name of Bitcoin Gold.
They say it will be combining virtual currency with physical metal, and you get the best of both worlds. Set to be the world’s first, the potential outcome remains to be seen. But as much as 12% of the current Bitcoin, is set to move to this new Bitcoin Gold.
Decentralize As Much As Possible
With the popularity of Bitcoin gaining more and more prominence, it will undoubtedly be split apart. But that’s also the advantage of having cryptocurrency anyway, there shouldn’t be a governing body and decentralization is the name of the game.
Too Much Decentralization Can’t Be Good Right?
Up to this point, there’s no hard evidence yet. But as the saying goes, too much of something won’t be good – and Bitcoin seems to be going that way for now.
Category: Team WhaTechCompany profile: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.