In the present-day world, the simple term ‘Bitcoin forks’ is gaining much popularity and is usually taken as a great topic of discussion in the cryptocurrency field. Actually, these forks refer to the hardcore changes brought about in the bitcoin protocols which may support or else contradict the prevailing rules. Further, these forks decide which cryptocurrency rules are to stand forever and which goes invalid. Thus, these cryptocurrency forks are nothing but the protocol upgrades that are generated slowly over time.
Classification of bitcoin forks
Mostly, there exist two main categories of forks that fascinate the bitcoin enthusiasts. This includes
• The soft fork
• The hard fork
Even though both of these forks have the immense power to bring profound changes to the underlying fundamental protocols, there is an essential difference between these varieties.
• The Soft type of bitcoin fork is such a rule change that exhibits the property of backward compatibility. This means the fresh rules can still be made interoperable with the legacy protocol.
• Alternate to this method, the hard type prefers to generate a rule variation to the software which has no backward compatibility. This further indicates that a hard fork really makes a permanent split from the prevailing legacy ruling segment of the blockchain.
From the beginning, the bitcoin blockchain has experienced these forks several times over the process of the technology upgrades. Even the Ethereum creator made a remarkable statement about the occurrence of these forks. Once, the blockchain actually split up into two, where the first half continued accumulating blocks to one version of the network while the other part starting adding to the other segment. And the result of this was truly amazing that lasted for nearly six to seven hours. There were two bitcoin networks operating efficiently at the same time with a self-version of transaction history.
During the course of time, the blockchain witnessed several forks during the bitcoin cash split but gradually the miners were able to limit the block quantity to nearly one MB size. Thus, the transaction number a block can hold was successfully under control but with the passage of time, the network has become more congested and people are demanding for the proper scaling of the blockchain so that it accommodates more people. So, currently, to resolve this issue, the network has started to pay a rate to the respective miners that maintain an exponential increase per year. This rate varies from $0.02 per transaction and can go up to $7-10 as per the demand.Click here now to know the current rate.