What is a fork

Types of blockchain forks

  • hard fork,
  • soft fork.

Hard fork

  • The necessity to add new functions to the system.
  • The necessity to correct bugs.
  • The necessity to improve the system’s protection.

Soft fork

  • The miner-activated soft fork. The updates are coming from miners.
  • The user-activated soft fork. The updates are coming from users.

Side effects

  • Lack of security. A lot of users think of forks as something dangerous. Luckily developers learn more about how to execute the procedure of blockchain splitting. The more information they get, the easier it is to protect users.
  • Confusion. When there is one blockchain all rules are clear. When the blockchain splits it may seem confusing and hard to choose one to follow.
  • Loss of funds. When the blockchain splits there is a chance for users appears to make transactions to both blockchains accidentally. In this case transaction cannot be finished and the user may lose money.

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