Wikicoin Vera Thornpike

Top 10 Coin in 2020 Forecast: Prediction How Much Will the Big Cryptocurrency Cost?

📚 Wikicoin
Top 10 crypto coins that can multiply your riches in 2020
Top 10 Coin in 2020 Forecast: Prediction How Much Will the Big Cryptocurrency Cost?

We’re slowly moving towards a utopian society where the economy is totally decentralized, and people use cryptocurrency instead of fiat currency. Whether you like it or not, the crypto community continues making waves and gathering enthusiasts all over the world. Virtual money is only rising in popularity, while the value of coins is highly unstable.

Definitely, buying some crypto won’t hurt if you have some bucks to spare. But what are the best coins to invest in? Today we will muse about the future of the most well-known coins and their value.

‘’Predicting the long-term outcome is easier than the short-term‘’- Naval Ravikant (Zcash Foundation)

In fact, short-term predictions appear to be more challenging because, in short terms, we have to consider temporary risks, such as geopolitical events, technological advancements, and failures, etc. In the long term, these factors may not necessarily matter.

What the coin price depends on?

Before we start observing the best coins to buy, let’s find out what the cost may depend on. The following factors have the potential to change cryptocurrency price:

  • Software upgrade. When the quality of the network improves (transaction time, block generation, defense against hackers), cryptocurrency prices soar. As a professional trader, you should keep an eye out on upgrades and their implications.

  • The hype around the coin. Probably, this is one of the most important factors. Indeed, public opinion can either put a cryptocurrency on a pedestal or destroy it. The traders that rely on hype should finish trading before it subsides.

  • Reliability of the wallet. Since all cryptocurrencies are digital, the absence of a good wallet can repel future investors and affect the currency price.

  • Governmental regulations. As soon as some countries ban cryptocurrency trading and mining, the interest in coins is killed, which affects its value and price immediately and seriously. The SEC and Venezuela are good examples of that.

  • Platform Applications. Some crypto networks host additional apps that might have their own tokens. If such an app does well, it may have a positive impact not only on the native token but the underlying platform, too.

Now it’s time to imagine what the cryptocurrency market cap 2020 will be like, and which coins are worth considering. Let’s review the top 10 coins.

There’s a great video predicting the future of five popular cryptocurrencies:

https://www.youtube.com/watch?v=edhJ0yHd1KA  

Bitcoin

Most cryptocurrency specialists are sure that Bitcoin will still rein the market of top crypto coins in 2020. Its value will be sustained thanks to:

  • institutional money,

  • fast adoption rate,

  • potential global financial crisis.

A lot of institutions buy BTC hoping to make an investment that can pay off in the future– this is a piece of the pie which everyone should have. It goes without mentioning Lightning Network which will add incredible value to the Bitcoin ecosystem.

As for Bitcoin price, it’s expected to grow by 200 percent over two years, which means it can be around $13,000-14,000 by September 2020. Some Internet users are sure it will grow to $27,526.10.

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Ethereum

Ethereum is in a controversial position: specialists’ opinion gravitates towards pessimistic predictions. Although now Ethereum is still one of the major dApp development platforms, things can change if this networks won’t be capable of handling the transaction load. Blockchain 3.0 and 4.0 projects are snapping at Ethereum heels and developers need to improve scalability or jump to EOS to ensure optimal performance.

It’s hard to calculate the future coins’ price when the total supply is unknown. According to Vitalik Buterin, there will be about ~100 mln ETH circulating in 2020, and the Ethereum market share will be about 1,137,500, 000,000

$1,137,500,000,000 : 100,000,000 = $11,375 per coin, ~+4,000 percent from today.

Possible Ethereum development scenarios

Ripple

It’s not a secret that XRP can become the king of banking infrastructure, so Ripple forecast 2020 is quite optimistic. The rumor is that Ripple has established a partnership with Western Union and even want to replace the SWIFT network. Today, Western Union and Moneygram are already considering using XRP

As for the price, Ripple predictions 2020 differ. According to WalletInvestor, its price may rise by 380 percent and reach $0.6-0.7 in a couple of years. The team from longforecast.com mentions the maximum price of $0.42. XRP price prediction 2020 from cryptoground.com is $1.20, which makes it perfect for long-term investment.

Stack of Ripple coins

EOS

If you are hesitant and are still wondering which coin to invest in, EOS will be a sure-fire way to raise money in the not-so-far future. EOS.io is expected to become the number one system for enterprise applications. If we ever witness shifting of Twitter, Uber and Facebook to decentralized platforms, they’ll certainly be built on EOS. It’s highly scalable, and most Ethereum projects can be shifted to the EOS network, which makes it a potential killer of ETH.

2020 can become the golden age for EOS: it may reach $95 in the middle of the year and drop down to $55 by December 2020. Other forecasts mention such numbers as $60 (Facebook) and $23 (Google).

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Stellar Lumens

XLR is the main contender of XRM (it has 5x market share of XLM), and while Ripple will dominate in the big bank sphere, Stellar Lumens may get the rest of the market. These areas include:

  • remittance payments,

  • decentralized exchanges, such as SDEX,

  • ICOs on Stellar,

  • implementation of the Lightning Network,

  • cross-border payments in small banks.

Stellar Lumens price prediction 2020 is around $0.64-$0.7. However, some websites give way for more optimistic forecasts.

NEO

Thanks to the revolutionary technologies underlying NEO, it’ll continue to grow with record-breaking volumes. The NEO ecosystem has the potential to become a major public infrastructure, and the Chinese government is interested in it. If “CrypoYuan” is created, it will only put NEO significantly above all competitors.

NEO is one of worthiest coins to invest in due to optimistic forecasts: thanks to investment from the Chinese government and other enterprises, its price can grow to $200 and $300 per token. According to cryptoground.com, future NEO value will be $88 in 2020, while Google mentions the price of $77.

Cardano

The launching of Goguen Project and KEVM testnet can trigger the growth of Cardano. When Goguen Project is completed, we may witness Cardano price soaring. What also contributes to its growth is implementation in the Eastern Pacific, especially Japan. According to previsionibitcoin.it, Cardano price in 2020 can rise from $0.29 to $0.5.

More detailed Cardano prognosis is here:

https://www.youtube.com/watch?v=c6anNr0NP14

Litecoin

One of the major crypto coins to invest in, Litecoin will continue conquering the market thanks to its technological superiority over Bitcoin. We know that Bitcoin cannot serve as a global payment network, while Litecoin platform is ready to share this network load. Thanks to the Lightning Network, LTC will be interchangeable with Bitcoin.

According to realistic predictions, Litecoin price can double in 2020 and reach $80. Some Internet users are sure that it will rise by 440 percent and reach ~$234 in the middle of 2020.

LTC forecast

QASH

Since QASH is going to become a convenient platform for both retail and institutional investors, its price can grow significantly even in 2018. Wouldn’t it be cool to trade alts without having to exchange them into ETC/BTC? That’s why QASH was created– its LIQUID platform combines all major exchanges to trade altcoins. According to tradingbeasts.com, we will witness the rise of QASH token price from $1.65 to $12 in 2020. Coin Predictions website displays that QASH will be in the range of $1.5-$7.

Why QASH is better than its competitors?

Success Factors

QASH

BANCOR

EXCHANGE UNION

SALT

Proven team

+

+

+

+

Is it present in exchange & banking?

+

N/A

N/A

N/A

Regulated?

+

N/A

×

×

Main products are built and tested?

+

+

×

×

tZERO

Haven’t heard about tZERO? By the way, this is an emerging leader of the cryptocurrency market: its creators aim to make it the New York Stock Exchange of Crypto. The tZERO token will pay 10 percent of gross revenue to the holders, which will encourage token holders to lock up their funds. Specialists say that TZRO price can reach $200-$285 by 2020.

Why tZERO is better than the usual stock exchange?

Final thoughts

Such events like the implementation of crypto worldwide and the next global economic crisis can contribute to the raising of cryptocurrency value. Despite rumors, the bubble called ‘crypto’ is going to explode neither in 2019 nor in 2020. Therefore, if you opt for the best coin to invest in, you can multiply your riches in two years. Don’t let this golden opportunity slip by: purchase top 10 coins while they’re still available.

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What is DAICO? Incorporating Features of DAO and ICO

📚 Wikicoin
The next generation fundraising system for startups and new major projects explained
What is DAICO? Incorporating Features of DAO and ICO

Lately ICOs have emerged as a new way to raise funds for fintech startups and have got all the popularity with the recent boom that cryptocurrency has seen. Every other ad on the internet has to do with ICOs. It’s not just the young projects that take refuge in an ICO for raising their starting capital and implementing the ambitious ideas– old corporations also try returning positions by announcing ICOs and Kodak is a perfect example of that.

ICO is proving itself to be a perfect invention not just for investors but also for developers. It offers a chance to developers to raise money if they’re convincing enough, whereas users can make investments in a project of their choice to support it and earn profit.

What is DAICO and how it came into existence?

A question that is trending, however, is what is DAICO? Well, as ICO got popular, it attracted many frauds as well. They were able to raise massive amounts of money by simply setting up promo-websites and white papers. Due to the increasing dissatisfaction of potential investors, some countries came up with solid regulations and a few even banned cryptocurrency and ICO entirely.

This led Vitalik Buterin to come up with DAICO ICO which is simply an improvement to the existing ICO. It integrates ICO with DAO. As far as DAO is concerned, it was a venture capital fund aimed at Blockchain- and crypto-related projects. It was a promising concept but, unfortunately, it got hacked because of some existing vulnerabilities in the system and that resulted in almost 3.5 mln Ether being lost.

As a result, the community voted in favor of a hard fork that led to the creation of Ethereum Classic – the original Ether, and Ethereum, the new Ether created after the hard fork. Now, some features of DAO, like the ability of spreading the funds over time, have been incorporated into DAICO.

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What are the features of DAO and ICO that have been put together to form DAICO? While DAO leverages crowds’ wisdom and doesn’t place complete trust in a centralized team, ICO is  based around a single project. DAO’s funding is spread over a period of time- the feature that is used in DAICO. It has to be added that in ICO, there’s no risk of 51 percent attack- DAICO will also utilize that.  

Now that you know what is DAICO, let’s do a bit of a DAICO ICO review to find out more detail on this subject.

How does DAICO work?

DAICO starts as a smart contract that is in contribution mode. This contract offers a certain mechanism that allows contributors to send their funds to a particular project while getting network-specific tokens in return. At the end of the crowd sale period, the contract prohibits any further contributions from anyone.

Once that contribution period is ended, a variable called “tap variable” gets into effect. It is usually programmed for predetermining the amount that can be withdrawn by the developers from token sale funds in a second.

The initial limit is zero; however, the contributors can increase the tap by voting on the resolution.

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Which DAO elements have been incorporated?

DAICO, basically, has three key elements of DAO.

First of all, it doesn’t place complete trust in any centralized team and there’s a voting system in place that makes decisions related to funds.

Secondly, it does not release funding as a lump sum amount – rather it’s spread over time through a particular mechanism.

Lastly, there’s an opportunity for refunding the amount being contributed. The decision is again based on a voting system and contributors are allowed to vote for refunding the remaining amount of money, in case the project is not implemented properly by the team.

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ICO vs DAICO – what’s the difference?

If you do a comparison of DAICO vs ICO, the primary difference you’ll observe lies in access to the funds.

In case of ICO, developers can fully access all contributed funds as soon as the token sale is finished. It’s the responsibility of the developers to make an advance calculation of exactly how much would be necessary for producing minimum feasible product. When this ‘soft cap’ amount is reached, the work on that product is started and money is spent wherever they feel necessary. However, if the initial ‘soft cap’ is not reached, they’re liable to refund that contributed money. And, if they’re able to reach the ‘soft cap’, there isn’t any real obligation that remains.  

When it comes to DAICO, voting is done on resolutions for either increasing the tap or for returning the remaining funds being contributed.

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The major characteristics of DAICO

Even though the system hasn’t been fully implemented yet, still some of the major features of this budding concept can be highlighted with the help of a project that is aimed at conducting the very first DAICO. Here they are:

  • Only the project developers can initiate a resolution for voting on the tap increases
  • Tap increases can only be under a certain percentage limit for abuse prevention
  • There is a limit in place on the frequency at which tap increases can be made
  • Only investor tokens can be used for voting, not the ones held by the project developers
  • In case of a planned poll, the contributors are informed in advance

So, DAICO is the next generation fundraising system for startups and new major projects. Though not implemented yet, the very first project seems quite promising and will lay the foundation of a new era.

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Dash: Faster Bitcoin That Governs Itself by Blockchain

📚 Wikicoin
Dash is a digital currency in the truest sense of the word as it aims at being functional for big buys, as well as the microtransactions that busy Blockchains struggle with.
Dash: Faster Bitcoin That Governs Itself by Blockchain

As the name suggests, Dash has been created as a digital coin that is trying to solve the problem of slow transactions that have recently been dogging the likes of Bitcoin, as well as working to slice down on the fees.

Dash is a digital currency in the truest sense of the word as it is aimed at being functional for big buys, as well as the microtransactions that busy Blockchains struggle with.

Similar to Bitcoin in the fact that its core function is to be a monetized digital asset that can be spent and stored, but Dash operates somewhat differently in its running.

Voting on the changes

Cryptocurrencies have always had a democratized aspect to them, in the case of Bitcoin, it is purely based on the majority as to what direction the coin takes. Dash provides more of a governance structure, but it is still set in a voting system.

This voting system helps changes happen far quicker than in other coins.

Dash is also self-funding as 45 percent of newly created Dash is handed to the miners, another 45 percent to the master nodes, and that final 10 percent goes to a treasury for funding the development team, marketing, customer support centers and so forth.

This is known as the Decentralized Governance by Blockchain (DGBB) and makes Dash the first decentralized autonomous organization powered by a Sybil proof.

Formerly known as DarkCoin

Dash, in the time where the Dark Web held the keys to the cryptocurrency universe, was firstly released as XCoin, then rebranded as DarkCoin.

The creator and lead developer of Dash is Evan Duffield, he along with the core development team, have grown to 30 full-time employees, 20 part-time employees and dozens of unpaid volunteers.

These core developers are all paid from Dash’s budget system which helps keep the focus and lead to less conflict of interest when other sponsors and donors are paying the bills.

Dashing up in value

Dash has, for a long time, been one of the top five coins by market cap. However, in recent times the instant payment coin has seen its value rise but its standing slip. Dash currently sits in 12th at the time of publication, yet its value in 12 months has gone from around $14 to a high of $1,542 at the end of last year.

Having begun in January 2014, Dash is one of the more stable and settled of the cryptocurrencies. It's development strategy and voting system is also quite unique and adds an extra edge of stability. Yet, Dash’s core ability to be fast and cheap has never been stretched far enough in a scaling situation.

Regardless, Dash saw a great year in 2017 after remaining almost on a flat line compared to the dollar price for its first few years. From February to December 2017, Dash’s trajectory was skyward throughout; it is only since the mass crypto drop just before Christmas that the coin has slowed its gain.

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5 Best Litecoin Mining Pools: Mine LTC with a maximal effectiveness

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Many mining pools turned out scams last year. It is important to choose a stable and reliable service before starting mining.
5 Best Litecoin Mining Pools: Mine LTC with a maximal effectiveness

Litecoin has been a leading cryptocurrency since its foundation. It is probably the most successful and certainly the most popular fork of Bitcoin. In the last few years, it has become an independent project with its own technologies and philosophy.

Often, talking about Litecoin, crypto-journalists mention that it provides four times faster transactions than Bitcoin. Obviously, this is true because creating a new block in Litecoin network takes 2.5 minutes, while in Bitcoin it is at least 10 minutes. You might think this is an evident advantage, but things are quite more complicated in Blockchain-networks.

What makes Litecoin Different?

Unlike Bitcoin, Litecoin makes technical improvements really often, sometimes not paying enough attention to potential risks. Developers try to provide as fast transactions as possible, improving many sides of Blockchain-technology: for instance, different hashing protocol or SegWit in 2017. Such a risky policy obviously affects the stability of the network, but Litecoin still has been doing great. It worked relatively well, even in difficult times, when the network was overwhelmed, so the team of developers got their credit of trust.

Despite a different hashing algorithm, Bitcoin and Litecoin have a lot in common, and both support mining. It is meaningless to try to mine Litecoin with your computer now because ASICs for Scrypt algorithm have already been producing. There are much more acceptable coins for CPU/GPU mining in 2018.

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How to mine Litecoin

If you want to mine Litecoin, it will require investments in hardware, facility and many related things. Only that way you have a chance to get a good revenue. In addition, it is important to pay attention to mining pools.

Today you are going to need a pool for mining anyway. About 2-3 years ago, there were some coins mineable without pools. Unfortunately, after a big rising in the industry in 2017, such an approach became a waste of money.

You do not have many pools to choose from if you decided to mine Litecoin. Many popular services turned into a scam in 2018. If you prepared a hardware, found a facility and are ready to make the last step for mining Litecoin, here are 5 best Litecoin mining pools that still deserve attention.

Multipool

Multipool interface

The pool was launched in 2013. That was a perspective but quite risky business because nobody knew if Litecoin was going to be a stable project or it would crash next year. That time pools just started to become a popular way of mining, and Multipool was one of the first successful projects.

Today the pool has servers not only in the USA but also in the EU. The fees are 1.5%. This is a relatively good rate because most of the other pools take 2%-3%. The pool provides different reward systems depending on a cryptocurrency you mine. In the case with Litecoin, it is PPLNS. Unfortunately, Multipool does not have a proper support service. It will be a problem, especially for beginners.

ViaBTC

ViaBTC interface

ViaBTC is the second largest Litecoin pool now. There are many cryptocurrencies, in addition to Litecoin, available for mining here. With ViaBTC, you can mine:

  • Bitcoin

  • Bitcoin cash

  • Ethereum

  • Ethereum Classic

  • Dash

  • Zcash

Actually, it was originally a Bitcoin mining pool. Other coins were added later. Litecoin became available for mining on ViaBTC in 2017.

There are no fees for transactions in that pool, but miners need to pay a 4% fee for withdrawing. The reward system is PPS. If you have your own hardware, you just need to create an account and start mining. You can also try cloud mining, but it is quite less profitable.

Nicehash

Nicehash interface

If you are not familiar with Nicehash, you probably found out what mining is just yesterday. This is one of the most popular services for miners and crypto-traders. Nicehash is a multi-platform that supports almost all of the top algorithms, including Scrypt.

The main sense of Nicehash is that users can buy and sell computing power. Actually, this is not about Litecoin mining. You are getting paid in BTC. I decided to put Nicehash in this list because the Scrypt algorithm is available there. Hence, it does not matter what cryptocurrency is used to pay a reward. Anyway, it is always possible to exchange BTC for LTC in the Nicehash system.  

Nicehash does not require registration for miners. However, it is important to point out that some of older versions of ASICs firmware are not compatible with Nicehash. Before connecting to a server, make sure that you have the latest version of firmware. Full instruction is available on the official Nicehash website.

Payout level is 0.001 BTC. Fees depend on a balance and a wallet type. Full information about fees is provided in the table below:

Table 1 Nicehash fees

Wallet type

Balance

Fees

Eternal

Less than 0.1 BTC

5%

Eternal

More than 0.1 BTC

3%

Nicehash wallet

More than 0.001 BTC

2%

Coinotron

Coinotron interface

Coinotron is one of the oldest and stable mining pools. It was founded in 2011 and now provides nine cryptocurrencies to mine. A remarkable thing is that Bitcoin is not included in this list.

In order to start mining, you need to create an account on the Coinotron website and follow the instructions. The site, by the way, provides statistics of the most powerful miners and the latest confirmed blocks for every available to mine cryptocurrency.

The pool uses PPLNS, RBPPS and PPS reward systems. So, the fees are various from 1% to 3%. The minimum payout level is different for every coin. For Litecoin it is 0.02 LTC.

The main disadvantage of the pool is that it also does not really have an actual support service. If you have any questions, you can only search for an answer on a help-page.

Litecoinpool.org

Litecoinpool.org interface

Finally, litecoinpool.org. It is definitely the best Litecoin mining pool in 2018. Previous services are mostly multiple and support many cryptocurrencies. litecoinpool.org is incomparably better for Litecoin miners.

The pool has a pure PPS reward system. You are getting paid for every valid share you submit. Actually, the pool provides merged mining, which means that you can mine several altcoins, based on Scrypt algorithm, but get a reward in LTC. In addition, there are no fees for transactions.

litecoinpool.org is one of the largest pools, so it has servers all over the world. It is very convenient because it is always better to connect to the nearest server.

One time litecoinpool.org had to close registration because it accumulated too much computing power. The pool users controlled 40% of the network, and it could cause distrust of the other part of the Litecoin community. Now the registration is open again.

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What is Hard Fork – Explained For Beginners

📚 Wikicoin
Hard forks have become more and more popular and obvious since a major one happened with Bitcoin Cash in August 2017, that is why it is important to understand them
What is Hard Fork – Explained For Beginners

Blockchain and crypto trading has been a popular trend lately. More and more crypto coins are coming in and offering investors some great opportunities to make a fortune. Among all that, there are some fancy terminologies associated with Blockchain as well and understanding them is equally important as understanding crypto trading itself. One such term is hard fork and it is used quite widely in the world of Blockchain. So, what exactly it is? Well, before we get into that, let’s first find out what is Blockchain protocol and what does fork mean?

Blockchain

What is Blockchain protocol and fork?

Well, these two terms are directly associated with the primary term that is the focus of investigation here– hard fork. Here is what each of these refers to.

  1. Blockchain Protocol: It refers to the set of rules that defines connection, mining as well as transaction laws in Bitcoin mining. For becoming part of the Blockchain network, one needs to comply with all these rules defined by the Blockchain protocol.
  2. Fork: It refers to the moment when there’s a change in protocol version.

What is a hard fork?

Now that you know what Blockchain protocol and fork refer to let’s try to understand the term hard fork. Well, it actually refers to a drastic change in Blockchain protocol due to which the blocks/transactions that were previously rendered invalid become valid (or the other way around). A hard fork requires all users or nodes to upgrade to latest protocol version. In other words, hard fork refers to a permanent change from previous Blockchain version where nodes on the previous versions won’t be accepted any longer by the latest version of Blockchain.

Essentially, it creates a kind of fork in Blockchain where one path goes to new and upgraded Blockchain while the other continues along that old one. As it normally goes, it only takes some time for all the nodes on old Blockchain to realize that they’re running on an outdated version and a quick upgrade to the latest version is required.

If all that sounds too technical, let’s try to understand this in simple terms. Hard fork refers to a situation when one cryptocurrency splits into two. It usually happens when a change is made to the existing code of the cryptocurrency in question and this change leads to an old version and a new one.

Why Blockchain protocol updates are necessary?

Well, that’s a pertinent question and there are actually several reasons for such updates to Blockchain protocol. Here are top three of them:

1. To patch major security risks from older versions

With cryptocurrency being a comparatively new invention, it’s in the stage of its life that regular currency has already been through. For regular currency, we have seen different versions of color, paper, security layers and font over the years before we had what’s available today. With all that refining, it is almost impossible now to manipulate it. Now, that’s exactly the case with cryptocurrency. Every update makes it securer and better.

2. To add some new functionality

One of the major reasons behind most software updates that come today is that some improvement was needed to the older version. That’s exactly the case with Blockchain code as it is upgraded year after year. Being open source, the developers from all over the world are allowed to work on Blockchain code and suggest improvements. Any feature that is considered good is then added to its upcoming version.

3. For reversing transactions

If you remember fake bucks, you’d very well understand that the culprit could have been put into jail but the whole amount of money might not have been refunded. However, the best part about crypto is that the damage can very well be minimized. As soon as some security breach is detected, all transactions that took place in a given time period can be proclaimed as non-existing. This certainly makes stealing harder.

Is there anything like a soft fork?

Well, Yes! The term soft fork refers to pretty much the same concept and the only difference is that in this case, just one Blockchain remains valid when the users adopt the update.So, that means both the types of fork result in a split, where only the hard fork leads to two coins/Blockchains.

You can also refer to soft fork as a change in protocol that offers backwards compatibility as well. It does not require you to upgrade the Blockchain version you’re using right away and you can continue to work the same way as before unless you plan on doing something that does not comply with the new upgraded protocol.

A couple of popular hard fork cases

Despite the fact that Blockchain isn’t something too old, we already have witnessed hard fork quite a few times. A couple of popular examples include:

1.     Bitcoin Cash

Bitcoin Cash

Bitcoin Cash offered a few major differences from original Bitcoin as it was less decentralized and offered better transaction speeds. The protocol update came on Aug. 1, 2017 and as a result, Bitcoin Cash turned into a separate, new cryptocurrency. Those who owned Bitcoin before this hard fork got exactly the same Bitcoin Cash amount in their wallet.

2.     The DAO

The DAO

This one was built on Ethereum Blockchain as some sort of smart contract while it was intended to work as venture capital fund. Once it was all set up, it could allow every Ether holder to get DAO tokens as a replacement. However, it got hacked and led to 3.6 mln Ethereum going down the drain. A soft fork was voted by the community to make sure the hacker wouldn’t be able to cash it. However, it only took a short amount of time before the majority of the votes were given to a hard fork.

So, that’s probably all about what is hard fork. Hope all this detailed information on the subject would help understand it!

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WikiCoin: What is Blockchain Technology and How it Works

📚 Wikicoin
Although Blockchain is revolutionizing the way we see any kind of digital transaction, the technology itself is not new.
WikiCoin: What is Blockchain Technology and How it Works

At first glance, Blockchains may look just like other records of information that are maintained by a network of users, such as Wikipedia or GitHub. In fact, there are even similarities; the entries are contributed and updated by a community of participants, and no single person controls all of the information. However, at the core, there are key features that distinguish Blockchain networks.

Innovative application of old technologies

Although the concept of Blockchain being used for cryptocurrency was first introduced in Satoshi Nakamoto’s 2008 white paper, the technology itself is not new. Rather, Blockchain is an innovative combination of three existing technologies: private key cryptography, a distributed network with an open ledger, and incentivization protocols.

Private key cryptography

On the Blockchain, every participant’s secure digital identity reference is based on a combination of a public and a private cryptographic key. Together, they form a digital signature which authenticates the user. The next step is authorization — a way to verify that the user has the appropriate resources and permissions to complete a given transaction. Authorization is achieved through a distributed, peer-to-peer network.

Distributed network

Unlike centralized databases, a Blockchain does not have a main server with a master file holding all of the data. Instead, Blockchain is a distributed network where every client, or node, uses mathematical verification to confirm transactions broadcasted by other nodes. As every node arrives at the same conclusion and updates the record independently, the network’s distributed consensus becomes a de-facto official record. This way, Blockchain eliminates the need for a trusted third party to secure digital relationships and reduces the risk of centralized failure.

Transactions

When a user initiates a transaction (such as sending Bitcoin), their private key is combined with the public key of the recipient, as well as the timestamp, description, and other relevant transaction information. This block of data is broadcast to the network and verified through the consensus of nodes that have “witnessed” this transaction. Finally, the transaction is added to the official record.

Protocol

The more nodes that can verify a transaction, the more secure the network will be. Different Blockchains use different methods for creating incentives and achieving distributed consensus: some are based on Proof of Work, some on Proof of Stake. Each Blockchain’s protocol outlines specific rules for verifying transactions, adding new blocks and allocating rewards. In any instance, Blockchains attempt to find fresh solutions to the ancient “tragedy of the commons” problem by engaging users’ self-interest to fulfill a public need.

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