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So�tw orks are generally easier to �eatures in a cryptocurrency w ithout w aiting and since then, Ethereum C lassic has com e

im plem ent because it only requires support �or consensus. into existence.

�rom a vast m ajority o� m iners, and w allets can

choose to upgrade at their ow n pace i� they Forking is also necessary i� cryptocurrency 3. Bitcoin Cash

w ant. N o changes are m ade �rom the point o� developers need to m ake som e changes.

view o� end users. Still, the com m unity disagrees w ith it: they It is a cryptocurrency created due to a �ork

can create another token w ith a new protocol in the Bitcoin netw ork on August 1, 2017. A�ter

The so�t �ork approach preserves the version and use this one instead. the split, it becam e a separate cryptocurrency

blockchain’s stability and m inim izes user w ith its blockchain. Bitcoin C ash o��ers a

disruption. H ow ever, opposing groups still 4. A Di��erent Vision larger block size and low er �ees com pared to

need to continually create new tokens and

It can occur i� the com m unity disagrees Bitcoin.

attem pt to �ork a cryptocurrency in place o� a

w ith how cryptocurrency is m anaged or how

so�t �orked token.

it develops. For exam ple, a �ork is initiated i� 4. ZClassic

m any stakeholders w ant to change the course

It is an open-source im plem entation o�
Why Are Forks Needed? o� the project. This approach does not a��ect

Zcash �eaturing a zero-know ledge proving
those w ho do not ow n the new token: it does

1. Changing Protocols
not a��ect anyone else but those w ho support schem e on top o� a proo�-o�-w ork C onsensus

C ryptocurrency enthusiasts o�ten the �ork. M echanism .

w elcom e �orks because they allow them to

m ake im provem ents and adjustm ents to the Forking is also handy i� an essential 5. Ethereum Plus

underlying protocol. I� there are issues w ith developer leaves: a new developer m ight

Ethereum Plus is an Ethereum �ork that

the existing blockchain scalability, they can decide to create their project and m ake

create a new version w ith a bigger block changes w ithout w aiting �or consensus �rom allow s users to create 3D designs on the

size. Som etim es they decide to do this even all users o� existing tokens. Ethereum blockchain w ith sm art contracts

i� there are no technical problem s; instead, and DApps and enables users to earn interest

they m ake upgrades just because they believe 5. Diversi�ication on their ETH . It uses sm art contracts to

it is necessary or valuable �or the �uture allow DApps and users to create a global 3D
Forking is also handy �or diversi�ication

developm ent o� their project. m arketplace �or sharing 3D designs.
purposes. It is help�ul to have several

cryptocurrencies to attract m ore investors and

In addition, �orks allow developers to
increase m arket liquidity. 6. Monero

m ake any necessary changes to advance

their cryptocurrency project or com m unity. Som e projects do not o��er any token at all M onero is a decentralized cryptocurrency

D eveloping a new cryptocurrency is – instead, they ork rom another project w ith using the PoW C ryptoN ote protocol, m ined on

a long and com plex process. Som e an existing token to continue developm ent ordinary com puters and hom e PC s. It o��ers

m ultiple approaches and problem s need under that project. Usually, �orks occur w hen com plete anonym ity to its users by using ring

to be addressed along the w ay, including the developm ent team needs several m ore signatures, stealth addresses, and total coin

adjustm ents to block size, m ining di��iculty, m onths or years o� w ork to release their �ungibility through the innovative C ryptoN ote

in�lation rate, or the consensus protocol. cryptocurrency. protocol that allow s transactions to be

unlinkable and untraceable by any third party.
2. Banning Regulators

Famous Cryptocurrency Forks

O n the other hand, som etim es, �orks C ryptocurrency �orks are a dynam ic �ield

1. Litecoin

happen because o� external political events. that requires a com prehensive understanding

G overnm ents that prohibit cryptocurrency Litecoin is the �irst cryptocurrency to use o� the technology and its application.

are upset about an inability to control it; as the Scrypt algorithm along w ith Segregated
C ryptocurrencies are bound to evolve and

a result, they m ake changes to prohibit or W itness and Lightning N etw ork, helping it

grow , w hile there are no guarantees on how

restrict its use. C ryptocurrency developers to scale transaction capacity and reduce

�uture �orks are decided be�ore they happen.
m ight also have disagreem ents w ith transaction �ees.

regulators: som e projects m ight have di��erent In order to analyze and predict cryptocurrency

view s on the true m eaning o� decentralization 2. Ethereum Classic �ork-related events, it is essential to conduct

and censorship resistance. thorough research on the project and

Ethereum C lassic is a decentralized

read several discussions throughout the

plat�orm that runs sm art contracts:

3. Measures to Protect Against Floods com m unity. It is also im portant to rem em ber

applications that run exactly as program m ed

There are other possible reasons �or w ithout any possibility o� dow ntim e, the technical side o the coin’s orking

�orks: they can be used to protect against censorship, �raud, or third-party inter�erence. process-it is straight�orw ard to overlook this

large-scale m iner attacks or activate new The original Ethereum blockchain w as hacked, step and lose value w hen a coin splits.

8 PAYOUTMAGAZINE