99% of cryptocurrency investors equate Bitcoin Hard Fork with splitting Bitcoin's block chain.
But is that the truth? Or have they not just understood the nature of Bitcoin's Hard Fork?
In this article, let's go find out about Hard Fork and some other types of Bitcoin fork!
OK, got it Let's us begin.
What is Bitcoin Hard Fork?
Bitcoin Hard Fork is simply an event to change the rules of the protocol Bitcoin , causing old blocks and transactions to be disabled.
Once the Hard Fork takes place, all nodes and users are required to upgrade to the latest client software.
In case, some nodes do not accept the new rule but still use the old rule, the network will happen an event called Split Chain - splitting the block chain into two different block chains with different vision and mission. .
And most of Bitcoin's Hard Fork happens to split this block chain. Therefore, many people mistakenly think that Hard Fork is synonymous with Split Chain.
But that's not true. Splitting bananas can happen without a hard fork or soft fork.
History of Bitcoin Hard Fork
Since being created by Satoshi Nakamoto (2009), Bitcoin has experienced many large and small forks. But in terms of Hard Fork, there are only two.
Bitcoin's first hard fork began at block 478558 in August 08. With the requirement of changing the block size from 2017mb to 1mb (maybe 8mb) in order to improve the transaction speed issue of Bitcoin at that time.
But, many nodes in the Bitcoin network disagree with this change and as a result, the split Bitcoin chain creates Bitcoin Cash (BCH).
Maybe you are interested in: What is Bitcoin Cash (BCH)? Complete focus on the virtual currency BCH
Two months after the first Hard Fork, in October 10, Bitcoin Gold (BTG) was formed after the Hard Fork from Bitcoin's block chain at block 2017.
By reading this, many of you might be wondering: Why is Bitcoin with so many forks and why there are only two here?
The answer will be in the section below!
Types of Bitcoin Forks
In addition to Hard Fork, Bitcoin also has other types of forks such as Soft Fork, Code Fork, Merge-Fork. You guys quickly learn about other types of Bitcoin forks.
Bitcoin Soft Fork is a change of protocol software to invalidate previous transactions. As of now, Bitcoin has experienced 16 Soft Forkes.
Bitcoin's first Soft Fork took place on July 28, 07 with disabling the OP_RETURN function. This error allows the user to spend any Bitcoin in the network.
And Bitcoin's most controversial Soft Fork can be said to be Segregated Witness (SegWit) in 2017.
Bitcoin Code Fork are projects that take the source code of the Bitcoin block chain from which to build a separate blockchain.
The first Code Fork Bitcoin project is NameCoin (2011), then Litecoin (LTC), Dash (DASH) and lots of other coins have forked this way.
Merge Fork are projects that combine the source code of Bitcoin and another blockchain to create a completely separate blockchain.
The typical Merge Fork is Bitcoin Private (BTCP) which was forked from Bitcoin and ZClassic (ZCL) in 2018.
Why did Bitcoin Hard Fork happen?
Conflict of vision
Hard Fork happens when the Bitcoin protocol needs to change existing rules, adding new functions in Bitcoin Proposal Improvement (BIP) proposals to the network.
The Hard Fork is good for the network of blockchain projects in general and the Bitcoin network in particular.
However, when there is a change, there will be opposition because of the shared vision and benefits in the network that causes Bitcoin Hard Fork to split most of the chain into two separate new chains.
Once the coin has been forked from Bitcoin, it will usually airdrop to BTC holders before the time of the hard fork taking place at a certain rate (usually 1: 1).
And many projects have hooked up to the exchange to create a new coin through the Bitcoin Hard Fork.
After that, they will support listing on the exchange with the purpose of releasing the tokens generated to collect huge amounts.
Does the hard fork cause Bitcoin to rise?
Although, many people believe that getting an airdrop by holding BTC when the Hard Fork takes place will cause the demand to be higher than the supply and thus the price will rise.
But, to date, there's really no data to suggest that the Hard Fork event could raise the price of Bitcoin.
Therefore, do not suffer FOMO By news, Bitcoin Hard Fork event in the future. It is very difficult to return to the peak.
Hopefully through this article, you have a better understanding of Bitcoin's Hard Fork in particular and some other types of Bitcoin forks.
If you have any questions please comment below this article, the Coin98 team and I will respond as quickly as possible.
Now, I would like to say goodbye, and see you again in the upcoming articles.