What is a hard fork?
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
As the popularity of cryptocurrency increases, we're slowly seeing mass adoption take hold. Most recently, Pornhub partnered with Verge (XVG), as well as several other major players in the online porn industry. Pornhub is by [...]