What is a Cryptocurrency Hardfork?

0
373
A hardfork is a split from a system, as it relates to blockchain technology.

If you’ve been in the crypto space for sometime, then you have likely come across the term hardfork.¬†There have been many hardforks in the cryptocurrency world.

In this post, we’re going to take a deep dive into hardforks to understand how they are changing the crypto space.

Crypto Elements

Every cryptocurrency has various elements that include:

  • A blockchain
  • Algorithms
  • A community

Other features are:

  • Purpose
  • Protocols

The above features are vital and they are used to define a cryptocurrency.

For example, Zclassic is a Fork of ZCash. As a result, ZClassic carries the same features as ZCash such as private transactions protected by zero knowledge proof, and an equihash proof of stake mining algorithm, but with no founder’s reward making it ZClassic brings complete financial anonymity.

What is a Hardfork?

A hardfork is a split from a system, as it relates to blockchain technology. It is a change to the protocol that makes previously invalid block\transactions valid (or vice versa).

To effect a hardfork, it is necessary that all nodes or users upgrade to the latest version of the protocol software.

There have been many hardforks in the crypto space. The most recent and popular has been Bitcoin Private, which hardforked from ZCL. Examples of other popular hardforks include:

  • Einsteinium (EMC2) Hardfork.
  • Ignis Hardfork Airdrop.
  • Bitcoin Cash.
  • Bitcoin Private (BTCP)

During the given time of the split (Hardfork), a snapshot takes place and the record from the snapshot makes it possible to allocate/ distribute the new currency of the hardforked coin. Holders of the hardforking coin are allocated coins of the new blockchain in a given announced ratio, say 1:1.

In February, anyone who held Zclassic in a wallet or exchange that would support the split, was allocated an equivalent amount of Bitcoin Private after the snapshot. It is best to hold your coins in a wallet that you are in control of the signatures. (Public and Private Key)

Always make sure that you confirm from relevant sources on such type of news from the development team, official websites and social platforms.

A hardfork is usually an upgrade or improvement from the previous protocol. We can expect to see more upcoming hardforks as the industry evolves and matures.

.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here