What is a hard fork in the crypto currency world?
A hard fork occurs when a software update is introduced to the existing blockchain, which isn’t compatible with the existing blockchain software. This forces the blockchain to split in two. One blockchain will follow the new set of rules, while the other continues to follow the original set.
Forks are commonplace within the industry and they act to update the relevant blockchain. If there is consensus within the community one chain will survive. If no consensus is reached, then both chains remain and a new crypto coin (asset) is created as was the case with Ethereum and Ethereum Classic and Bitcoin and Bitcoin Cash.
What this translates to for us on our end is dealing with the two block chains and making sure that our processors have the ability to use both. In the future one of the branches of the blockchain may die.
A few things to consider if you look at bitcoin as more than a cash transfer vehicle are:
- It only holds value based on cash input from others in the crypto currency market.
- Some people did get rich on the start, but unless you have significant investment funds massive growth percentages are slowing.
- BTC or the original bitcoin currency is the one that holds the most stable promise.
Remember, for our industry BTC is the best way to move money. The wallets have the highest encryption ratings and the highest transfer volume. What security does transfer volume offer you? The block chain is code, that only has an origin point and destination point, when you have 300,000 origins and destinations, selecting one to look at is difficult.