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Cryptocurrency FAQ: What is a hard fork?

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Written by   75
1 year ago

There are times when the development team for a cryptocurrency starts to have diverging opinions on what is the best long term vision for the project. If the differences between the two groups cannot be reconciled, one group will separate from the other, and implement changes to the software code that they feel will ultimately strengthen it.

In layman's terms, one can think of a hard fork as a backwards-incompatible software upgrade. The issue is that not everyone wants to perform the upgrade, since some feel the upgraded code is inferior to the existing code.

As a result, the blockchain splits, creating two separate networks: one with the old rules, and one with the new rules, - Binance Academy

A fellow author put it eloquently this way:

...a hard fork creates two separate networks by splitting an existing one. Two ledgers with the same past and different futures, - @MoreGainStrategies

Graphic 1: Two blockchains after hard fork - Image by Binance Academy modified by the author

After the hard fork takes place, owners of the pre-forked cryptocurrency are eligible to collect the new cryptocurrency that resulted on a 1:1 basis. The pre-forked cryptocurrency would need to be placed into a crypto wallet that supports the hard fork.

Thanks for reading, and stay safe!

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Last modified November 6, 2020

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Resources:

  1. https://academy.binance.com/en/articles/hard-forks-and-soft-forks

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Avatar for CryptoWordsmith
Written by   75
1 year ago
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Comments

There is so much to learn about cryptocurrency, this made me realized that I.m still in my kindergarten level I guess :)

$ 0.00
1 year ago

the only constant in life is change, right?

i wrote this article because of the upcoming hard fork for Bitcoin Cash on Nov 15...please take a look at my article about that if you have some time. =)

thanks for visiting, and i'm glad this article was helpful for you!

$ 0.00
1 year ago

True indeed! I would love to learn about that, checking it out..

$ 0.00
1 year ago

So, a hard fork creates two separate networks by splitting an existing one. Two ledgers with the same past and different futures, right? 😊

$ 0.00
1 year ago

well put my friend! i'm tempted to edit my article and simply quote you!

$ 0.00
1 year ago

Haha, thank you. 😊👍

$ 0.00
1 year ago

done!

$ 0.00
1 year ago

Thanks for this, there is so much articles about this

$ 0.00
1 year ago

sorry for the late reply. the hard fork was concerning because there was uncertainty about whether the current crypto wallet you use to store your BCH would support the new coin or the existing one.

it looks like the new coin is not going to succeed, so everyone should be safe now.

https://cointelegraph.com/news/fork-in-the-node-bitcoin-cash-node-on-track-to-oust-bitcoin-abc

thanks for visiting...i haven't had much time to visit your content recently due to my multiple deadlines in the real world...sorry.

$ 0.00
1 year ago

Nice writing dear

$ 0.00
1 year ago

thanks for visiting!

$ 0.00
1 year ago

thanks for new information

$ 0.00
1 year ago

you are welcome...i invite you to look at my newest article that i just published. thanks for visiting!

$ 0.00
1 year ago

Is a hard fork made of stainless steel?

$ 0.00
1 year ago

Lol...so what's a soft fork made of then? thx for the tip!

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1 year ago

Plastic. 😜

$ 0.00
1 year ago

😂

$ 0.00
1 year ago