Before talking on the matter, it is important to clarify some terminology, what bitcoin is, in particular. Bitcoin is not just a “digital currency”. The minority knows that it is the first decentralized blockchain-based digital currency.
How does blockchain relate to bitcoin? It seems to be quite a strange question. It is impossible to imagine bitcoin without blockchain. Blockchain contains the history of all transactions completed by the users. Blockchain can be compared to the archive, where all information about users’ transactions is stored. Such archive is available to anyone, just like the information on transactions.
What is the difference between bitcoin and common payment services provider?
It will be better to demonstrate the difference between bitcoin and PayPal payment system, for instance. In fact, it is all crystal clear – unlike to its centralized rivals, bitcoin is an open digital currency. Anyone can review the initial bitcoin code to learn about technical aspects of the last. That makes the core bitcoin difference and advantage over its centralized rivals. Besides, hard fork still exists. If the initial bitcoin code is modified, new cryptocurrency appears, that is what people can actually witness from time to time. If it is all clear with terminology, then, we can move further describing and discussing what bitcoin fork is.
Some information about Bitcoin Cash and Bitcoin Gold
Bitcoin Cash appeared due to the first bitcoin fork and became the first quite popular and recognized bitcoin offshoot. First, it is important to explain what was the purpose of that hard fork. The developers intended extending the scope of the archive itself, which should have contained more information. As result, Bitcoin Cash (BCH) cryptocurrency appeared. Though there is a word “cash”, which means cash money, in the Bitcoin Cash item, Bitcoin Cash does have nothing in common with cash money. Bitcoin does only exist in the digital environment, just like any other cryptocurrency, and does have no physical equivalent.
Initially, Bitcoin Gold was thought to become an alternative bitcoin version aimed to enhance the last. The developers of Bitcoin Gold had a purpose to bring in more minor users instead of large companies exercising unjustified, immense influence on the network. Nevertheless, Bitcoin Gold was launched using original bitcoin code and does look like yet another altcoin.
What is the purpose of bitcoin hard fork and why do we need it?
The matter is that whenever a particular group of people makes a decision on improving bitcoin, then, we shall expect for the new bitcoin fork. The latest renewal in the network is known as SegWit2x. Bitcoin-Cash could not be the only hard fork within crypto-community. Recently, Bitcoin Gold yet another bitcoin hard fork has occurred. Consequently, the information about Bitcoin Silver, another planned fork, has appeared. At the moment, the technical base of Bitcoin Silver is being developed actively. There is likelihood that bitcoin fork is getting more and more popular phenomenon. As a matter of fact, it is important to understand that the regular fork maintenance is backed up by the interests of the particular groups within crypto-community.
How do cryptos score? The latest cryptocurrencies majorly score at prestige and popularity of its bitcoin ancestor. The already existing bitcoin user database also contributes to the prosperity of new cryptos. If you take a look at the new cryptos, you will see that they are already experiencing significant user database. How do they reach such results? New cryptocurrency does nothing but adopts bitcoin user database. However, it is still difficult to suggest how viable new cryptocurrency can be.
What’s on the whole?
According to the developers, every other bitcoin fork is just an attempt to decentralize bitcoin. Currently, there are several major mining-centers, which either way influence bitcoin network and activity of major miners. If hashing algorithm is changed, more users will be able to mine new cryptocurrencies. It is all good in theory; in practice, the situation is quite different. Bitcoin hard fork realization resembles much speculative activity on bitcoin prestige and popularity, managed by people interested in extra profit.
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