What is a Bitcoin Fork?

Knowledgebase Forum - Jul 27th 2017

  1. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    There has been significant news coverage and developments in recent weeks about changes to digital currency networks. These are sometimes called “forks”. Here is a simple, non-technical explanation to add context to recent discussions.

    What is a “fork”?

    A “fork” is a change to the software of the digital currency that creates two separate versions of the blockchain with a shared history. Forks can be temporary, lasting for a few minutes, or can be a permanent split in the network creating two separate versions of the blockchain. When this happens, two different digital currencies are also created.

    Why are changes made to digital currency protocols like Bitcoin and Ethereum?

    Each digital currency uses open-source software protocols with independent development teams responsible for changes and improvements to the network, much in the same way that changes to Internet protocols allow web browsing to become better over time.

    The mission is to create an open financial system for the world, and digital currencies will be fundamental in achieving this mission. However, many of these digital currencies are still in early development. Making improvements to the software , such as the number of transactions the network can support , is crucial to creating the next generation of finance.

    Why do forks happen?

    There are a few reasons why a fork can happen. For example, when a change is proposed to a digital currency protocol, users need to show their support for the new version and upgrade, in a similar way to people regularly update applications on their computer. In order for these changes to get approved, many people need to agree, just as changes to cell phone networks require many phone companies to agree.
     
  2. crazemariaelisa

    crazemariaelisa

    Joined:
    Jul 2017
    From:
    UK
    Very good information on forks, Thanks for posting.
     
  3. Elena

    Elena

    Joined:
    Jun 2017
    From:
    UK
    Yes actually!! It is significant change or update to the technology that is still compatible with traditional versions of the code. thanks for sharing.
     
    evo likes this.

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