There are over 100 different Bitcoin options or hard forks. Some popular options that are still available include Bitcoin Cash and Bitcoin Gold. Bitcoin code is open source, so its code can be forked to create a different version.
Most Bitcoin variants were created to address scalability and security issues perceived by some members of the Bitcoin community. Often, there are divisions in the Bitcoin community, a changing the main code or changing settings improvement is suggested. Controversy caused by these proposed improvements in the Bitcoin community has sometimes led to forks of the Bitcoin network.
Bitcoin options were created from a hard fork of the Bitcoin network. When changes are proposed to an existing blockchain, the changes are implemented either through a soft fork or a hard fork.
A soft fork is a type of backward compatible update to the blockchain network. A soft fork does not change the underlying rules or parameters of the blockchain. An example is a soft fork SegWit – a soft fork A change in the Bitcoin transaction format.
A hard fork is a radical improvement to the blockchain network. When there is a hard fork, a chain breaks; miners and validator nodes choose the chain they continue to validate. A hard fork leads to the creation of a new blockchain network from an existing blockchain. Hard forks often occur to add proposed functionality, to fix a security risk, or to rollback blockchain transactions.
An example of a blockchain transaction reversal was in 2016. The DAO, a decentralized autonomous organization built on top of Ethereum, was exploited by attackers. Part of the Ethereum community has decided to roll back all DAO-related transactions, allowing DAO contributors to get their funds back. Some members of the Ethereum community supported the hard fork to reverse transactions, while others opposed it. After the controversial hard fork, the newly created blockchain retained the name Ethereum (ETH), while the existing (old) blockchain is now known as Ethereum Classic (ETC).
A detailed article on the difference between Ethereum and Ethereum Classic can be found here Securities.io.
Notable Bitcoin Hard Forks
Most of Bitcoin’s hard forks are mainly the result of proposed improvements to improve the network’s security, scalability, and decentralization, or to solve a perceived problem. Some initially successful hard forks have been completely abandoned by their communities and have seen zero adoption; others are still actively traded on exchanges and used fairly in peer-to-peer (p2p) transactions.
Bitcoin XT
Bitcoin XT was launched in 2014 by former Bitcoin developer Mike Hearn. The hard fork hoped to solve Bitcoin’s scaling problems by increasing the block size. The offer has been formalized Bitcoin Development Protocol 101 (BIP 101). Bitcoin XT hard fork launched in August 2015; its block size was 8 megabytes – eight times larger than Bitcoin 1 megabyte block size.
Despite the initial interest in Bitcoin XT with over 1,000 nodes running the Bitcoin XT software, interest from users and node operators in the new Bitcoin fork has grown. weakened too soon because the big miners refused to support the project.
The Bitcoin XT hard fork influences Bitcoin fork offerings to date. Later hard forks are mostly a block size increase.
Bitcoin Gold
get away from block size the dispute is usually seen in Bitcoin forks, Bitcoin Gold hard fork It tried to make Bitcoin a more decentralized network. Bitcoin Gold uses a similar proof-of-work consensus algorithm front fork version. However, Bitcoin Gold is preferred over mining little specialized hardware.
Bitcoin uses the SHA-256 algorithm and favors ASIC mining hardware, which is expensive to purchase and operate. It uses Bitcoin Gold Equihash It supports GPU mining, or mining using the algorithm and graphics card. Bitcoin Gold aimed to make cryptocurrency mining more accessible.
Developers and proponents of Bitcoin Gold argue that because Bitcoin is mined only using expensive hardware, it allows only a few miners to control the network, which goes against the principles of decentralization. By allowing mining operations on less expensive, more accessible hardware, more miners can join the network, reducing the chance of a 51% attack – an attack on a cryptocurrency network where a miner or a group of workers is present. deal miners control more than 50% of the network’s hash rate. When one miner or group of miners owns or controls more than 50% of the network, it can lead to double-spending and other network vulnerabilities.
Bitcoin Cash
Following inexorably in the footsteps of Bitcoin XT, Bitcoin cash attempted to make the Bitcoin network scalable by increasing the network’s block size. Bitcoin Cash has a block size of 8 megabytes, similar to Bitcoin XT.
Bitcoin Cash emerged in May 2017 following discussions in the Bitcoin community to implement a scaling solution known as the Segwit2x update. This has sparked debate within the Bitcoin community. SegWit2x was never implemented. Bigger supporters block size decided to create hard fork It’s called Bitcoin Cash.
Bitcoin Cash is designed to be a cheaper and peer-to-peer system. Bitcoin Cash’s block size is dynamic – it grows over time. The Bitcoin Cash block size started at 8 megabytes, but has since grown to a 32 megabyte block size.
Bitcoin SV
Bitcoin Satoshi Vision (SV) was not direct hard fork from the Bitcoin network; this was it hard fork of the Bitcoin Cash network. Bitcoin SV was created by the controversial self-proclaimed Australian computer scientist Craig Wright. Like most hard forks before it, Bitcoin SV was created to solve the scalability problem faced by PoW blockchains.
Bitcoin SV started with a block size of 128 megabytes. Less than a year after its creation, an update called the Bitcoin SV network took place Quasar. The upgrade increased the block size of the network to 2 gigabytes. Seven months passed Quasar upgrade was another update called Bitcoin SV network Creation update: this update completely removed the block size limit and made Bitcoin SV expandable to any possible size.
How is Bitcoin? Hard Forks Fareed?
The overall reason for creating these forks is to provide a more secure and scalable system that will overtake Bitcoin in terms of adoption and popularity. So far, none of the Bitcoin forks have been able to topple Bitcoin and its dominance.
Some of these Bitcoin forks have ended hard fork as a result transportation disputes between community members; even after being fork the scalability debate is still ongoing in communities created by fork blockchain often leads to further fragmentation.
In terms of developer activities, Bitcoin has more number of active developers compared to it hard fork versions. Bitcoin has also improved greatly in expanding its network using layer-2 solutions such as the Lightning Network, a lightweight, fast and scalable network built on top of Bitcoin, and improvements such as SegWit and Taproot.
Of all the Bitcoins hard forks, Bitcoin Cash has managed to stay relevant over the years. Its native coin, BCH, is still actively traded on major cryptocurrency exchanges, including Binance, Coinbase, and Kraken.
In the latest development, Robinhood announced in an email to customers that it will end support for Bitcoin SV. Users have until January 25 to convert or sell their BSV. Robinhood said its decision was based on its regular review of the cryptocurrencies it offers on its platform. Similarly, Bitcoin Gold’s native coin, BTG, was delisted from Binance in October 2022. The delisting and end of support for these Bitcoin variants on major cryptocurrency platforms and exchanges clearly indicates their lack of acceptance and use.
However, Bitcoin maintains its status the undisputed king of crypto has been gaining attention and investment from both retail and institutional investors over the years.
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