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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.

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