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What Hard Forks Are

in Crypt ocurrency

receiving an equivalent am ount o� coins in the

new blockchain, hard �orks are essentially a

splitting or doubling o� the blockchain. H ard

�orks allow �or radical changes in a blockchain

H ard �orks allow �or changes in a blockchain
w ithout requiring consensus �rom the entire

w ithout requiring consensus �rom the entire
netw ork. This is achieved by im plem enting a

netw ork. This is achieved by im plem enting a
new m ining algorithm or creating extra block

new m ining algorithm or creating extra block space �or transaction data rather than using

blockchain technology, a hard �ork
space �or transaction data rather than using old-�ashioned m ining di��iculty algorithm s.

IN is a perm anent divergence in the

old-�ashioned m ining di��iculty algorithm s.

blockchain’s history, w hich occurs w hen non-

upgraded nodes can’t validate blocks created How Forks Work

by upgraded nodes. What is a Hard Fork?

A �ork is a perm anent divergence in the

A hard �ork is a blockchain technology that blockchain’s history, w hich occurs w hen non-

There are tw o types o� �orks, so�t and

splits into tw o branches. It is a perm anent upgraded nodes can’t validate blocks created

hard. M iners w ho introduced the new ruleset

divergence, w hich occurs w hen non-upgraded by upgraded nodes. H ow ever, nodes not

im plem ent a so�t �ork by setting a unique

nodes can’t validate blocks created by upgraded to the new ruleset w ill accept blocks

version num ber. The old nodes w ill recognize

upgraded nodes. Forks allow the netw ork
the blocks up to the latest version num ber and transactions created by the updated

to m odi�y its consensus ruleset or rules on
as valid and stop generating blocks on top nodes, even i� they technically violate the

w hich blocks are con�irm ed as valid and
o� those blocks. O nce all the old nodes have previous rules. This could result in tw o chains

upgraded, they w ill start to generate blocks w hich are not w ithout the need �or a hard coexisting tem porarily.

on top o� the previously m ined blocks. C oins �ork. H ard �orks are a w ay to upgrade the

give you the right to use the currency’s Bitcoin protocol and becom e com patible w ith Forks allow the netw ork to m odi�y

blockchain, w hile tokens are purely digital the latest version o� the so�tw are client. W ith its consensus rules on w hich blocks are

assets w ith rights proprietary to their issuer. holders o� tokens in the original blockchain con�irm ed as valid and w hich are not w ithout

52 PAYOUTMAGAZINE