Loading...
Hard Fork 2017-10-31T00:34:09+00:00

What is a hard fork?

A hard fork is a mandatory update to the part or all of the blockchain protocol. A permanent divergence in the blockchain is created and all nodes running the previous version will not be accepted. This is different to a soft fork as it requires the all nodes must upgrade their software in order to continue transacting on the blockchain. Unlike a soft fork, a hard fork is not backwards compatible.
When the hard fork takes place all the users validating the newest version will continue along a new path and all users validating the old version will continue along the original path.
A good example of this is when Bitcoin Cash was created… a certain percentage of nodes started to support the updates to the protocol which caused the chain to split. All Bitcoin nodes continued on the original Bitcoin blockchain, and a new blockchain was created which became Bitcoin Cash.
Another great example of a hard fork was when the transactions were reversed on the Ethereum blockchain following the hack on the DAO (Decentralized autonomous exchange). Read more on Investopedia here
 bitGuru Hard Fork Diagram

As you can see from the image above, both new blockchain’s contain the same previous transactions. But that is all they share in common, blockchain 1 cannot verify transactions on blockchain 2 and vise versa.

Advantages of  a hard fork

Given the nature of a hard fork it can be quite difficult to pull. Generally, a lot of time goes into this type of update to make sure they do go smoothly. A hard fork can be used for a number of reasons:

  • Updating errors in the previous version of the blockchain
  • To increase block sizes, if there is too much demand at the previous capacity. This could be to speed up the network
  • To increase the supply of the coin
  • Upgrading the network, adding new functionalities to the blockchain
  • Reversing transactions
  • Simply to create a new version of the blockchain, if there is a divide in how the network should run

When used effectively can be very beneficial. While a hard fork will always cause a split in the original blockchain the new blockchain may not be used. If 100% of the nodes enforce the upgrade rules then the other blockchain will exists but not be in use.

Recent cryptocurrency news

  • Domain Names Are Crucial For Mass Adoption

NNS Mainnet has launched

October 17th, 2018|0 Comments

The Neo Name service is finally live after months of testing. Users can now bid on .neo domain names to use instead of their public key. NNS launched on November the 9th and users can [...]

  • Mastercard May Be About To Enable Bitcoin Transactions

Mastercard May Be About To Enable Bitcoin Transactions

October 10th, 2018|0 Comments

Bitcoin and cryptocurrencies has gained unprecedented media attention since being launched in 2009. Many have debated as to whether or not bitcoin will make into mainstream markets, and many have argued that bitcoin needs to [...]

  • Sweatcoin app

SweatCoin Literally Pays You $0.06 USD Per 1,000 Steps!

October 9th, 2018|0 Comments

Sweatcoin is an App available both on IOS and Android devices that literally pays you for working out. By allowing the app to use your location and count your steps, you are rewarded by Sweatcoin [...]

  • coinbase wall street

Coinbase Looking To Recruit 150 More Staff, Recruiting Wall Street’s Finest!

October 5th, 2018|0 Comments

Coinbase, the biggest cryptocurrency exchange in the United States have recently opened an office in New York City. Instead of selling cryptocurrency to regular individual investors like it has been, the purpose of the New [...]