Crypto Academy | Season 3 Week4 | Home Work Post for Professor @awesononso | Topic: Block Chain Forks.
Blockchain users have different mindset and ideas how cryptocurrency blockchain works, knowing that they are decentralized system which permit users of the system to have access and take active part in case of modification of the blockchain.
However, i appreciate Professor @awesononso for a Wonderful lecture delivery. Below is the solution to the assignment.
Question 1. What is a Fork? (In your own Words)
There is always continuity in live or in any organization as well as in block chain since perfection can not be made by man not to talk of implementing the decision taken.
When we look at the aspect of blockchain, its assumed that no system is perfect by are always reliable through upgrading for current perfection.
A fork is a process of upgrading a blockchain in order to accommodates more node. This changes the rules of the blockchain.
This rules ate meaningful and recognized when there is acceptance by the node. When there is an upgrade (forks) on a blockchain, investors experience high volatility in the market place which is beneficial.
Hence if a change occurs in the Cryptocurrency technology, it becomes a new Cryptocurrency with a new block chain that separate from the original cryptocurrency.
Question 2.Explain in details what a Hard Fork is with examples (Can be of any blockchain).
Hard fork is a process where the blockchain ssplited into two node. Here one serves as the continuation of the previous rules while the other chain have a new rules guiding it. Ethereum Hard Fork are connected to each other, both the new and the old block considered each node as invalid. Note that one block which is considers invalid can still be considered valid. New currency are created through hard fork like Hive and any node that runs through this network would have to be upgraded.
Hard fork is a change in the block chain that is large enough which the entire network doesn't share a decisions. There is always an additional same amount of coins in the newly fork version of Cryptocurrency.
Question 3. Explain in details what a Soft Fork is with examples (Can be of any blockchain).
Soft fork is a type of fork where changes are minimal and the entire people that are making use of the Cryptocurrency network agrees to this changes with the decision been made.
Soft fork can equally be seen as a type of fork that allows for current upgrade to a blockchain network without a split of the node (ethereum fork). Here upgrade does not requires a split of node for the blockchain to function effectively.
The upgraded and new node works together as valid, which is as a result of a new rules. This type of fork is known as backward - compatible.
4.What are the differences between Hard Forks and Soft Forks?
| Hard Fork | Soft Fork |
|---|---|
| 1. There is a split in the blockchain to create new node. | Absence of split in the blockchain. |
| 2. One serves as the continuation of the original rules while the other have new rules. | It allows for current upgrade of network. |
| 3. Both the old and new node considered each other as invalid. | The upgraded and new node works together as valid as a result of a new rules. |
| 4. New currency are created through the fork. | It does not requires split for upgrade. |
| 5. It is backward - Incompatible | It is seen as backward-compatible |
5.Explain the following Bitcoin Forks and explore the blockchain where necessary. Indicate if they are hard forks or soft forks;
BitcoinCash: Bitcoin cash is a hard fork. It originated from the bitcoin blockchain in August 2017 with the initial BCH. The purpose behind this is aimed at increasing the size and transactions of BCH in the blockchain to be made. This is a cryptocurrency that is faster and easy to use. Its community has since been developed and created via a hard fork Bitcoin blockchain. Although, there is series of arguments over BCH whether it will have outstanding value in the future.
Segregated witness:
Segregated witness is a process of removing the signature data from the transaction of Bitcoin. It was ment to reduced a blockchain size or volume limited problems which may hinder Bitcoin transaction speed during the process. The purpose was to prevent non-international Bitcoin transaction and to bypass certain rules restrictions with soft fork.
6.Write on the Steem and Hive Hard fork and show similarities in their Genesis Blocks(Provide screenshots).
Steem Hard Fork: Steem hard fork split and seized the tokens of the community members. (Tron, Hive). Its seen as the latest ongoing struggle for control of the blockchain.
Hive Hard Fork:
Source
Hive is a decentralized social media blogging platform or blockchain that powers the Hive blog. The blockchain offers Hive, Hive Blocked Doller (HBD) and Hive Power (HP).
Hive genesis Block
Source
This Crypto currency is an open source social media blockchain. This was established through a hard fork, originated from Steem blockchain after the community decided to split and form their own node.
Since blockchain is a decentralised system, it can not be easily control my and individual. As i earlier explain using the Hard fork above, shows that a split in the blockchain helps to create new nodes which equally can be trace through same history of the hard fork.
There is a tendency of creating new transaction on the blockchain without interfarance of the previews blockchain.
Thank you Professor for my accepting my entry.