DeutschAnyone who takes a closer look at digital currencies such as Bitcoin, Ethereum and Co. has certainly heard the terms such as fork, hard fork or soft fork. We at CoinPro.ch would like to explain in more detail what exactly is behind these terms and why they are so important for the further development of every cryptocurrency and the entire crypto universe.
What is a Fork?
No, “fork” does not come from Knigge and has nothing to do with food. It originally comes from software development. There is so-called open source software there. Software, in turn, consists of code that a developer has programmed. In contrast to proprietary software, the code is free for anyone to copy, use, modify and rewrite. This is even expressly desired and part of the concept. Because if several people or programmers further develop the software, it can only be better in terms of, for example, stability, security or speed. And everyone benefits from this in the end. These programmers have then “forked” the software. The developers can also add completely new functions. Fork is therefore the moment when a different version of the protocol is used than the basic version.
Blockchain and Fork: how Does that Fit?
Ultimately, the blockchain is also based on code that must constantly evolve due to requirements, technical progress and external adjustments in order to remain usable and, above all, secure. Because the public blockchain is also based on open source software, which is further developed by many programmers. What all modifications of the code have in common is that all participants agree and agree on certain points. This is to have the transactions recognized by the other blockchain participants. The blockchain is based on so-called nodes. In order to be able to document the transactions, these must run on a compatible version of the software in order to ensure this. Now there are two types:
The Soft Fork
This change to the blockchain code offers backwards compatibility. This means that older versions of the software still work after the “fork”. The old nodes also work with the new nodes.
The Hard Fork
The answer is obvious: With the hard fork, there is no backwards compatibility. In principle, a new currency is created with certain similarities, but nevertheless “insurmountable” obstacles from a software point of view. An example of a hard fork is Bitcoin Cash (BCH). Launched in August 2017, this cryptocurrency is characterized by the advantages of faster transaction speeds and less decentralized. All Bitcoin owners received the same number of BCH on the cut-off date as they had BTC in their wallet.
