Bitcoin has encountered multiple numbers of forks over time. Forks can be defined as a process that allows for different (or modified) development structure within the main (read Bitcoin) platform. A major reason behind Bitcoin forks is the coin’s inability to live up to its main principles. The original Bitcoin whitepaper outlines the coin as a decentralized virtual P2P cash system that assures faster transaction and lower transaction costs than conventional payment systems. But, over the course of time, Bitcoin has shown to stray away from these principles and turning into a reserved currency- instead of a regular everyday currency. These factors led to the development of Bitcoin forks or offshoots to introduce more scalability in the Bitcoin network.
The post below offers a brief on both Bitcoin soft and hard fork.
It’s a moderate process that implements changes in BTC protocol but does not change the actual product. Soft fork can be termed as “backward compatible”. It implies the new modified protocol developed here would be acknowledged by the old nodes in the original system. A soft fork does not exactly refer to the launch of a new product or coin.
On the other hand, hard fork is comparatively more radical. The process refers to complete split off from the main product (read BTC) to launch a new product. After hard fork, there won’t be any communication or transaction in between Bitcoin and the forked out coin. Bitcoin Cash was the first ever coin to be produced from Bitcoin hard fork back in 2017.
Although a Bitcoin hard fork assures improved scalability yet the original coin is still on the ruling throne. The coming months promise a further rise in Bitcoin value. If you have been waiting to trade in Bitcoin for long, now is the perfect time for you. You can trade through apps like Bitcoin Profit or can sign up with a BTC exchange as well.