Creating Value Through Cryptocurrency Forks
By Jamesa Brown
Since cryptocurrency’s early development before the 2010s, the internet has become an excellent resource regarding it for everyone who desires to know all of the necessary information. The potential benefits of the fork in cryptocurrency are no exception. There are three notable benefits that have recently occurred.
Those who are familiar with bitcoin have most likely heard about its scalability problem. The creation of “bitcoin cash” occurred to directly improve this issue by increasing bitcoin’s block size from 1MB to 8MB, which allows for more transactions to be processed and thereby reducing user fees and minimizing the strain of increased bitcoin usage.
In January of 2017, Monero’s hard fork allowed users to benefit from an upgrade to the confidentiality of its’ security through the implementation of the feature, Ring Confidential Transactions (RCT). Such measures have since then dramatically decreased the amount of hacking that can occur to interrupt the trending transactions of Monero’s investors.
In an effort to reverse the effects of a hack that occurred in one of the applications of Ethereum, the majority of its community and its core developers upgraded their software. Those who rejected this change maintained the old software for what is now known as Ethereum Classic. The divide between those who support Ethereum Classic and Ethereum has created level competition and allowed for more potential upgrades for those who desire them and an alternative for those who don’t approve of them.
Overall, the above examples emphasize one major goal of cryptocurrency: to allow the users a variety of options regarding their money. Despite the cynicism that the changes that are involved in the split of blockchains, everyone has the opportunity to support their belief in how cryptocurrencies should operate. Forks create value by allowing for the improved scalability and privacy as well as the increased options for all users.