The world of finance today is not what it looks like before the market crash of 2008. It was because of the crash that gave birth to a new order of finance \u2014 the new order of cryptocurrencies. Bitcoin broke barriers and introduced a new way of thinking from the traditional ways of transacting business and exchanging cash. Bitcoin was the first cryptocurrency that took the world by storm. Since then, countless altcoins came to the fore to make a name for themselves. As many altcoins came from out of the blue, some were the result of forks. Reasons for forks to occur differ. Developers needed to upgrade the network. A debilitating hack just happened. Or there was a major disagreement within the token community. Forks can cause controversies and affect market prices especially the cryptocurrency in question.And so, what is a cryptocurrency fork?To simplify, a fork can either be an upgrade or a breakaway, a change that is introduced into the blockchain\u2019s protocol used by the software in validating transactions. There are two breeds to these \u2014 soft forks and hard forks.A soft fork is a backward compatible sort of change that allows older nodes or connected computers to continue recognizing as valid new transactions coming in. Only that any mined blocks will be invalidated by the updated nodes. Soft forks need the majority hash power of the network in order to be successful or they end up becoming the smallest chain and turning into a hard fork.A hard fork this time is the change which breaks the backward compatibility. The nodes that are running on the old software will recognize new transactions as invalid. They will have to update if they wish to mine new valid chains. If a big chunk of the community still wants to continue\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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