Hey guys,
Here I am again with another explanation which is related to my previous post. Some of comments were asking me to expalin what is BitCoin fork, so here it is in simple language.
What is this BTC FORK that everybody is talking?
It is simple. The technical world it was used to identify 'Software Update'. For an example if you update any program in your computer means you have forked from older version.
There are two types of fork concepts.
- Soft fork
It is like you update your Skype or Antivirus software. It doesn’t conflict with the existing software. Not essentially need any improvement in the system. It also allow you to run on previous version.
2.Hard fork
An essential or mandatory software update, and it will conflict with the older version. Like your Whatsapp, or paid subscriptio ,it won’t run if you don’t update it. This happens when the developers found some serious issues with the exsisting program. Important thing is when this happened can not be reversed, means you will need another hard fork to undo it.
So as I mentioned my previous post, in rising demand BTC need to be improved. That is essential. It could be a 'SOFT' update or may be 'HARD' one.
The major problem in BTC now..
THE BLOCK SIZE..Yeah. Transaction in the BTC blockchain added as block. Each block has definite no of transaction. Eaach block is created in 10 minute time frame. So in given time frame only limited number of transactions can be generated. Due to the high demand in BTC this number is not enough....Yeah That's why some times you want to wait long time to send or receive BTC..feel me now? So the developer want to find a solution for this.
Who decide which solution is best?
Bitcoin is owned by nobody. In one word, decentalized. So this leads to That’s why people (Specially the developers) are arguing on how the update should be carried out. As long as Bitcoin users don’t reach a wide consensus on what’s the right way to go, no update (or fork) will occur.
There are two solutions so far. (supported by two groups of developers)
Reduce the size of a transaction, so the block size will be same and can contain more number of transaction.(This group called as BitCoin Core team)
This is a soft fork and the solution is called as SegWit.Increase the size of a block, so block can contain more transactions. (This group called as BitCoin Unlimited)
This will lead to a hard fork, since this is changing the BTC rules.
So that is it. Will meet you soon with, What will happen if the fork occurs..Keep in touch
until then
!May The Force Be With You!
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