Similarly, a blockchain fork happens as a result of changes made to its original code or protocol by developers. This can be due to a number of reasons:
Developers want to add new features and functionalities to the blockchain
They want to alter the existing rules of the blockchain to improve its ecosystem
They want to create a new cryptocurrency
A fork usually results in a blockchain split i.e. two versions of the blockchain are formed. Depending on how the change in rules is implemented, a fork can be a soft fork or a hard fork.
In this article, we’ll briefly discuss the differences between soft and hard forks, and then we’ll talk about the different kinds of hard forks:
planned hard forks that are a direct result of the developers and the community choosing to upgrade the existing protocols of a blockchain,
contentious hard forks that arise due to disagreements within the community on which protocols of a blockchain to keep or replace,
source-code hard forks that look to create entirely new blockchains with a new set of features.
At the end, we’ll talk about how an upcoming blockchain project is gearing up to hard-forking five major cryptocurrencies into a single, more sustainable, more secure blockchain. So, keep reading and let’s dive right in!
Soft Fork vs Hard Fork
A soft fork is a change to the blockchain protocol that narrows down the set of rules enforced on the blockchain. For example, developers may choose to limit the block size from, say, 1MB to 500kB.
This allows every node on the network that is working by the old rules (i.e. they haven’t updated their software or wallets to the version with the new rule set) to still take part in validating and verifying transactions (because 500kB is still within the upper limit of 1MB).
Therefore, a soft fork is said to be backwards-compatible and easier to implement.
But what if you were to update the blockchain protocol to increase the block limit, say from 1MB to 2MB? What would happen?
Nodes on the network that do not upgrade to the new rule set will reject the new blocks and be unable to validate them (as the size is well above the 1MB limit). In this case, to participate on the new chain with the new rules, a node will have to upgrade its software (or implement a new one).
Such an upgrade in the blockchain protocol that expands the rule set (to add new functionalities), and is not compatible with older versions is called a hard fork.
In a hard fork, all participants must upgrade to the new software to continue to validate transactions. This results in a permanent divergence of the blockchain, and as long as there is support on both its older and newer versions, the two chains will exist concurrently.
Now, there are three major types of hard forks — planned forks, contentious forks and source-code forks. Let’s discuss them one-by-one.
Planned Hard Forks
A hard fork is planned when a blockchain protocol is upgraded so that an old set of rules is abandoned in favor of new ones. It is usually a part of the blockchain project’s roadmap and is implemented to enhance its capabilities.
Development on the old chain is discontinued and the entire community moves forward on the new chain with a new set of rules and enhanced capabilities. A planned hard fork does not result in the formation of a new coin.
For example, Monero upgraded its network in January 2017 by conducting a planned hard fork on its blockchain to implement an adapted version of Confidential Transactions called Ring Confidentiality Transactions (RCT).
This upgrade vastly improved the blockchain’s security, privacy and anonymity. All of the network’s nodes promptly made the transition to the new chain and business carried on as usual.
Contentious Hard Forks
A contentious hard fork happens when a blockchain community is divided on whether or not to implement certain changes in the blockchain rules, and a portion of them goes ahead and creates a new chain by making the changes they want to the blockchain code.
Now, because the rest of the community continues to support the old chain, this results in the creation of two competing, actively developed chains with different sets of rules.
Usually, the old chain continues to hold its original name and network while the new chain is given a new name. Thus, a contentious hard fork results in the formation of a new coin.
For example, bitcoin was hard-forked by a portion of its community that wanted to increase its block size from 1MB to 8MB. This resulted in the formation of a new coin called bitcoin Cash. bitcoin Cash allowed for more transactions to be processed and brought down user fees considerably.
Source-code Hard Forks
Many public blockchains are open-source i.e. everybody has access to their core code base. Changes made to the code base of a blockchain results in the formation of a new blockchain that can be entirely different from the one it’s derived from (based on the changes in its code).
This type of fork occurs not at the functional level of a blockchain but at the core developmental level. The new blockchain is launched afresh with a new genesis block and does not share transaction history with its ‘parent’ blockchain. A source-code fork results in the creation of an altcoin.
For example, Litecoin was a source-code fork of bitcoin. Its code base was a fork of bitcoin’s code base and was launched with an entirely new genesis block. It shares no history with bitcoin transactions and is considered a separate alternative cryptocurrency.
Introducing the World’s First Multi Cryptocurrency Fork
The Foundation is set to launch the world’s first penta-cryptocurrency hard-fork, merging five major cryptocurrencies into one multichain blockchain via simultaneous contentious forks.
The contentious forks will result in the formation of a new coin called bitcoin Origin (ORI). The new multichain fork will be an advancement in technologies of the five biggest Proof of Work cryptocurrencies, namely bitcoin, bitcoin Cash, Ethereum, Litecoin and Dash.
It will, however, feature a variant of the Proof of Authority consensus protocol called Proof of Ambassador instead.
The Proof of Ambassador protocol will be a combination of two major consensus methods — Proof of Stake and Proof of Authority, and will enable a high transactional throughput of 15,000 transactions per second on the blockchain.
Improvements Over Existing Blockchains
bitcoin Origin will support an incredible 15,000 transactions per second
It will be one of the most energy-efficient cryptocurrencies currently in existence
It will make use of ground-breaking, innovative blockchain protocols like multi-state engines (MSE), cross-chain, multi-layering and namespace sharding to let users of any technical skill implement their own native, serverless blockchains
That will in turn solve the problem of economic abstraction
The use of an Ethereum Token Bridge on the blockchain will allow for dApp fees to be paid in your own native tokens
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According to , the club is in real danger of being banned from UEFA due to the breaching of the financial fair play rule. With £200 million plus interest in the hole (due on October,) the club will potentially go through bankruptcy protection procedures.
Which raises the question: How can a highly successful club, with decades of history and success, be capable of such wrong doings and mismanagement? A.C Milan is not the only club to be in the red. In fact, an approximate 80% of clubs worldwide are in financial difficulties and in huge debt.
is a blockchain startup for the football industry looking to bring a solution to the budget shortages. It’s an interesting coincidence that they recently signed with former Milan footballer and a FIFA World Cup holder. Gianluca Zambrotta.
Zambrotta said during the :
“I feel it is the first time that a technology like this can really make a difference for so many clubs worldwide. I think I know in which clubs we need to start implementing it.”
Through the United Fans platform, football fans will be able to decide on issues such as a player transfer or a coach recruitment, while backing that decision financially. Team managements will be able to improve decision making, using crowd wisdom.
It’s a perfect merge of fan unity and a resource of fresh funds. If fans feel like their voices matter, then they will take the necessary steps to help keep the club’s finances in the green.
Moreover, the use of smart contracts will ensure that the money raised (crowdfunding feature) is used solely for the purpose it was intended, and if a voted decision is not executed by management, then all funds are returned to their respective holders.
Additional features in the platform include the purchase of cheaper game tickets & merchandise, and the ability for fans to reward football players after a game. And here is the best part: their token that will power the platform is called Goal Coin!
With Gianluca Zambrotta added the team and Italy being one of the top countries for the use of the platform, there is great potential in helping disrupt football in Italy but also European clubs overall. Fans need to be involved with the clubs they dearly love, and management needs to make ends meet. The two parties will work hand in hand.
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Chinese exchange Zb.com has set up a branch in Thailand with a plan to turn it into the regional crypto trading hub in Southeast Asia. The move came as the Thai government finalizes the country’s regulatory framework for cryptocurrencies and initial coin offerings.
Also read:
Creating Regional Hub
Dawei Li. (Photo credit/Matichon)
Chinese cryptocurrency exchange and wallet provider Zb.com recently announced that it has set up a full-fledged branch in Thailand, called Zbthailand (Zbth), with the aim for it to become the regional crypto trading hub in Southeast Asia, according to local media.
Zb.com already has a presence in China, the US, Canada, Switzerland, Australia, and South Korea, Matichon publication detailed, adding that Zb.com currently has over 3 million customers. According to Coinmarketcap, Zb.com lists 59 coins with a 24-hour trading volume of $160 million.
Dawei Li, the exchange’s co-founder, told the publication:
The company plans to expand its digital currency trading platform in Thailand…in addition to providing knowledge and understanding of blockchain technology and investment in digital assets to Thai investors, including recruiting strategic partners to attract more foreign investors to invest in Thailand.
The new exchange offers the trading of 16 cryptocurrencies against the Thai baht, BTC, and ETH. The supported cryptocurrencies at the time of this writing are BTC, LTC, BCH, ETH, ETC, EOS, QTUM, NEO, SNT, AE, ICX, ZRX, EDO, FUN, MANA, and TZB. “All transactions fees are 0.1%,” according to the new exchange’s website.
In November last year, Zb.com partnered with licensed Japanese exchange Quoine and Chinese bitcoin mining solution provider BW.com “to support and facilitate liquidity across isolated cryptocurrency & fiat markets,” the companies jointly announced.
Thailand’s Crypto Regulatory Framework
The decree to regulate cryptocurrencies and initial coin offerings (ICOs) went into effect in Thailand on May 14, putting the Thai Securities and Exchange Commission (SEC) in charge of the regulation and “requires sellers and operators of such assets to register with the SEC within 90 days,” Reuters details. The last day for registration is August 14, according to Matichon publication.
The Commission is expected to issue the regulations by the end of June after holding a public hearing. SEC secretary-general Rapee Sucharitakul was quoted by Reuters:
Offerings of digital tokens will not be allowed until the regulations are announced.
According to Rapee, the public hearing will take approximately 2-3 weeks “because investments in digital tokens are complicated and carry high risks.”
What do you think of Zb.com setting up a hub in Thailand? Let us know in the comments section below.
Images courtesy of Shutterstock, Matichon, and Zb.com.
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