CryptoCurrency

Ethereum Hard Fork – Know What And How Its Done

Published on October 14, 2017

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News for miners and the ethereum holders, sit tight for the new fork, this time the hard fork that going to happen in October itself. The fork in simple word is the coin spilt which results in splitting the coin into two. I was researching on the fork this week and came across some different knowledge which is worth sharing. In this article, I will explain to you what is a hard fork, why community and developer decide to split the coin, and finally going to talk about merits and demerits.

Also Read: Bitcoin Gold Fork Why & How? Effect On Bitcoin Price

Talking about Ethereum

With the current Market Cap of $32billion and daily volume change of around $ 1B, Ethererum is placed 2^nd after bitcoin amongst the crypto coins. The sudden boom as compare with the previous year price with these stats make the ethereum a good way to invest money and was expected to touch the skies dumping upto $1000 next year.

With so much heat going in mining and investing making the difficulty to raise, which further lead the requirement of more fast and efficient hardware and requires regular maintenance of blockchain. The increase in difficulty to mine the coin makes it even harder to mine the coin in future and could simply end up to be non-minable, to enchase this don’t happen the hardware and the software part needs to be balanced so that in both way it ends up profitable and more convenient to use in future.

What is Hard Fork? And Why We Need It?

As we know the coin work on the blockchain, which further tunes by the miners who mines the transactions and keep the blockchain live in action. The way miner works are by confirming transactions and earn small mining fee from it, which is done by solving a couple of block equations. However, with the increase in the difficulty level of solving blocks makes the investments in mining unit not worth for long term.

The miner has the choice to select the software to run. Further, we have issues when the community and developers lower the mining profits. With the increase in difficulty level and less profit in mining makes the miners to change the coin they are mining which going to make the original blockchain and popularity less in action. At a certain time, they decide to split the coin into two, where half of miner runs with old and the other half mines another half. The fork leads to having two separate chains now from a certain block which lead to be a Chain Split.

The Consequence

With the news of fork and split, one can observe sudden price variation with billions of dollar increase or decrease volume change per day. Further splitting the coin into half, will keep your hands on both the coin and you own both of them. It is advisable to buy a bunch of coins which are going to be forked as you going to get the equal amount of new coin which going to have some worth.

Source: Coinmarketcap.com