Forks – “illegitimate children” of Bitcoin or a cryptocurrency at a fork

()

Forks for what they are created

Due to the constant updating of financial instruments and the emergence of new developments in the processing of the rapidly developing world of cryptocurrencies, in the current article it was decided to dive a little deeper than usual, answering the question of what are cryptographic branches of a chain of blocks and forks of Bitcoin. To make the point clear even to a beginner. Just about the complex, let’s get started.

The word “fork” takes its origin from the English “fork”, which in the present context means “fork”. This describes the process of the system. ‘Crossroads’ makes it possible to use the program code of one project to create a new one. That is, a fork is the start for programming your own currency, which will develop regardless of the source. Freedom of choice in the branches allows you to create opportunities that other areas do not have, but in this case there may be a loss of code compatibility between the forks.

By the way, often in a narrow environment of mining specialists, one can hear how forks are also called altcoins, which in turn is also a true name.

It is noteworthy that the source code of Bitcoin is publicly available, open to any inhabitant of the world wide web, due to which it is possible for the forks themselves to appear, their variety and profile of specialization. Due to the openness of the code, it is possible to create cryptocurrencies that will not be calculated on the basis of certain CUs (valuable instructions), but will be independent.

The most popular question at the stage of familiarization with the cryptocurrency system is why open source code? The answer lies on the surface. Each new type of coin is then called upon to strengthen the system, opportunities are needed that other cryptocurrencies did not have before. For example, to ensure anonymity of transactions. The popularity of altcoin is provided by its indispensability, usefulness. This is worth remembering when creating a new currency in the Bitcoin system.

Most types of electronic coins, just created and released on the market, are doomed to failure. The problem is their inability to compete in the market. This must not be allowed. It is important to consider all the nuances when creating a fork. Every detail of the work of the future cryptocurrency should be thought out.

Why are forks created? There are many opinions on this subject, but all of them boil down to the fact that their creation should carry some kind of benefit, benefit, otherwise they quickly fade into the background, giving way to more thoughtful coins.

There is a hypothesis that the practicality of creating new cryptocurrencies will help strengthen the source of the fork – Bitcoin itself, in the initial version of which there are errors that criminals like to use. But creating and forcing a new altcoin makes an attack on the network impossible.

If you move away from the traditional scientific descriptions of all the above processes and imagine Bitcoin in the form of a castle. Then the cryptocurrencies surrounding it will be fortifications in defense.

In addition to the benefits for Bitcoin itself, the authors (developers) themselves benefit directly from creating the type of coins; for them, this is a great opportunity to make money on exchange speculation. Many succeed in this, having the necessary knowledge and skills.

How to speculate on exchanges

As you know, the most effective way to earn money is trading. To begin to understand speculation on highly specialized exchanges, you should pay attention to the currency selected for trading, and you will also need to adhere to approximately the following algorithm of actions:

  • Develop a business strategy.
  • Choose a trading platform. It can be a Russian-language exchange, for example, the former BTC-e – acting as WEX.nz, however, the English-speaking ones remain the most popular, because they provide access to the international market, for example, Poloniex. Many Russian users work with foreign exchanges because of their development and prospects.
  • Create simple mining conditions. The advantage of the fork should be ensured by the fact that coin mining will occur at a moderate power of computer components.
  • Increase transaction speed. The benchmark is the speed of transferring and confirming bitcoins. If you improve the performance of altcoin, then success is guaranteed.
  • Simplify the system. Everything ingenious is simple. This rule also works on the cryptocurrency exchange. The mining process should not be complicated as it works; if this is not possible, then the periods of complications should be increased.
  • Provide access to get the most coins in the pool.

Rating of the most famous forks

Litecoin (LTC)
Litecoin is recognized as the absolute leader in many lists of various publications. The reason for success is the almost free sending of money anywhere in the world. Decentralization remains a fundamental factor in the system. The hash algorithm involved is Scrypt.

LTC is quite capable of becoming a competitor to Bitcoin due to the ability to process a large number of transactions in a block chain, and it does not require a lot of time resources to wait for confirmation of payments and transfers.

Ethereum (ETH)
A feature of this cryptocurrency is the presence of a built-in turing programming language, so you can change the code, creating decentralized applications of various levels of complexity, with your own protocols, arguments, various parameters, or “customize” Ethereum to the selected format convenient for the user.

The prospect of ETH is seen due to its good volatility indicators, which makes the fork an excellent speculative tool.

Dogecoin (DOGE)
In its code, Dogecoin is a nominal copy of Litecoin, with some special differences that make cryptocurrency stable in the market. The mining period of DOGE shows the best results, relative to the competitors. Based on the algorithm of Scrypt.

Initially, this fork was conceived as a joke, because the face of the coin is a picture of a dog of the Shibau-Inu breed, but soon after its appearance it became seriously popular.

Peercoin (PPC)
Peercoin is resistant to many types of electronic attacks, when other cryptocurrencies may be vulnerable. The hash function used is SHA-256.

A feature of PPC is the support of two-stage payment confirmation, as an additional protection mechanism, which gives the fork a guarantee for the long term.

Dash
The main advantage of Dash is the complete guaranteed anonymity of transactions and owners, which distinguishes the payment system among other analogues, which Bitcoin users do not boast about.

The second primary criterion of importance is security. Not enough staff of programmers to hack the Dash system.

A characteristic feature of the fork is the automation of confirmation of payments, and therefore they are faster than with the approval of the miner, as happens with BTC users. Such acknowledgment is called distributed.

Monero
Like other cryptocurrencies, Monero is not subject to inflation, being unconnected with any state. Payments are not tracked, provided that the monitoring party has no control over most of the network. The basis is the CryptoNote hashing algorithm. The total emission is not limited after the completion of the main mining process, which makes it an influential fork.

Namecoin (NMC)
After appearing in 2011, Namecoin was very popular, but over time, user interest has weakened as developers stopped releasing updates. The implementation is based on the SHA-256 hash algorithm.

Working with NMC involves registering a new unique domain name in the .bit zone, which is independent of the ICANN governing body.

How to get forks

The procedure for acquiring altcoins is practically the same as buying bitcoins, just follow a few simple steps:

  • Firstly, you need to create a wallet to store currency by registering and getting an account for further operations. If necessary (if you intend to use the offline version of the wallet), you need to install the client program, after downloading it exclusively from the official website. Remember, portals offering to enter personal details and buy various types of coins – fraud, fake and fake, are used by fraudsters.
  • Secondly, after completing the registration, you must select any exchange, following its further instructions, or resort to the services of monitoring BestChange exchange points, but in this case you will have to pay an additional fee to the exchanger.

Once having completed the simple manipulations described above, you will quickly learn how to buy or sell purchased forks.

Cryptocurrency Trading Analysis Services

Bitcoin is an extremely unpredictable electronic unit of money. On the \”swing\” of her course, users earn thumbs up. But it is almost impossible to predict a fall or growth, you need an information resource from outside, by which it is really possible to determine whether a coin is moving towards weakening its positions, or towards strengthening. Moreover, any insider information usually does not live up to expectations. First of all, you need to find a clear and simple cryptocurrency market monitoring service, this will facilitate the task and greatly simplify the work, here are some of them:

  • Coingecko – many convenient graphs and statistical information;
  • BlockChain – the famous site of online wallets, has in its arsenal handy tools for analytics;
  • Bitcoinwisdom – the site broadcasts trading statistics from major world exchanges in real time.

Having full access to quotes for today and information about the past time, it will turn out to build a certain picture of the fall and rise of the exchange rate, as well as make a profitable investment if you buy coins on time, subject to the presence of two forks trading among themselves.

The most significant purchase problem for the community is obvious, this is the time spent on transferring and confirming transactions (on average about twenty minutes), during this period the situation can change dramatically, then the buyer will work at a loss. Therefore, it is very important to be able to understand the situation on the electronic media market.

It turns out that in order to choose the right currency, you need to understand the market trends, and for this you need to delve into trading because, in fact, speculation on the exchange is what it is. To succeed in this matter, you must:

  • To have knowledge of the chosen field, relying only on luck is stupid;
  • Clearly present their capabilities and prospects in the electronic money market. People who come there with high hopes break dreams of harsh reality.
  • A financial development plan is needed, otherwise there is no point in starting.

Many others, not mentioned in the review forks, unfortunately of the creators, are doomed to sink into oblivion, while remaining uninteresting to the user. A small percentage of them are traded at ridiculously low prices, bringing an imperceptibly small income. Consider these nuances when deciding to work with altcoins. Follow the well-known recommendations of the mining guru – do not store forks for a long time, hoping for a constant increase in the rate, but apply the golden rule of a successful trader – “bought – sold”.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Leave a Reply

Your email address will not be published. Required fields are marked *