The concept of hard fork is very easy to say but much more difficult to explain. 3 altcoins in the crypto market recently announced big hard fork news. One of them completed its hard fork and made a noticeable impact on its price. The other two are getting ready to complete their hard fork.
What is a Hard Fork?
Blockchain technology requires different parties to agree to preserve a Blockchain history. If the parties cannot agree, a hard fork occurs. Both Bitcoin Cash and Ethereum Classic emerged as the result of a hard fork where participants got stuck with the original source code. The hard fork represents a radical change in the Blockchain protocol. The soft fork leaves one fork, while the hard fork creates two separate Blockchains.
3 altcoin hard forks are coming
Two major Blockchains are on the verge of hard forks. Ethereum (ETH) will release the Merge upgrade on September 15. Its rival Cardano (ADA), on the other hand, is preparing the Vasil upgrade. Finally, the little-known Decred recently completed its own hard fork. Thus, it had an interesting effect on its price. But will the same effect come for ETH and ADA? cryptocoin.com We have compiled it for you.
Ethereum Merge
The most talked about hard fork right now is the Merge upgrade of the Ethereum network. The leading altcoin recently completed its final test before Merge with the successful Goerli testnet implementation. The successful test brought the network closer to full transition. Accordingly, it enables Ethereum Mainnet to integrate with the Beacon Chain Proof-of-Stake system. Merge is finally close. It was announced that the upgrade will be completed on September 19. The Ethereum network will transition from Proof-of-Work mechanism to Proof-of-Stake with Merge.
However, miners do not care if the price of ETH is up or down. The PoW system, which will change with Merge, provides them with income. Therefore, they are less enthusiastic about the PoS system. Therefore, they are moving to Ethereum Classic (ETC), an old fork of Ethereum. ETC has outperformed other forks to date. ETC traders seem to be betting on a failed, delayed or improved Merge as more miners arrive.
Cardano Vasil hard fork
Cardano founder Charles Hoskinson said the Vasil hard fork will provide “a huge performance boost to Cardano and its smart contract capabilities.” Smart contracts enable transactions to be agreed upon and completed automatically behind the scenes. Cardano’s hard fork will allow the use of reference scripts that speed up and augment smart contracts. Therefore, the opinion that the hard fork will set itself apart from the others is extremely strong.
At a recent crypto conference in California, Hoskinson said that the Vasil hard fork will not experience any more delays. University of Toronto finance professor Andreas Park said the hard fork is generally a positive development. The professor states that people who specialize in blockchain and crypto should agree. According to him, the Vasil hard fork of the altcoin project will be a demonstration of joint effort.
Decred hard fork
Decred is an example of why hard forks are being watched with such enthusiasm by the crypto industry. It had a hard bifurcation in May and on August 5th, with an immediate price impact. It started the day at around $26 and jumped around 30% in less than two hours in the afternoon. Thus, it went up from about $40 to $60.
Copying Bitcoin’s code, Decred replaced it as a means of empowering and rewarding its owners who contributed to changes in the network. It also implemented a hybrid consensus model that uses both PoW and PoS systems to increase the value of the token. However, most altcoins use only one of the aforementioned models.
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