In software development, a fork or bifurcation is understood as the creation of a project in a direction other than the main or official project through the use of existing source code . This practice is very common in open source or free software projects .
Index of contents:
- What is the Hard Fork in Bitcoin?
- What types of hard forks or forks do we find?
- What are the differences between soft and strong forks?
When we talk about forks or forks in blockchains, we refer to the creation of projects starting from a previous project . Therefore, we could talk about a kind of update.
It is important to keep in mind that blockchain networks are governed by codified rules , which allow nodes to validate transaction blocks in the same way and remain in consensus. Therefore, these rules verify that the structure of the block and the transactions included in it, such as the size of the block, that is, the space it has, are correct.
With this little introduction, we are going to delve more about what hard forks are , what types are there and how they work.
Index of contents
- Hard Fork in Bitcoin
- Types of Forks or forks
- Soft fork or soft forks
- Bumpy fork or strong forks
- Differences between soft and strong forks
- The old or new chain is left desolate
- The two chains survive by dividing the value of each cryptocurrency
- The chain that initiates the fork is foreign to the main chain
Hard Fork in Bitcoin
A fork can be defined as a fork . In programming this refers to the process that is carried out to copy the source code of a program , in this case it would be the bitcoin platform. The forks can be given two different utilities, on the one hand they are used to clone the bitcoin code to create a new cryptocurrency . And on the other hand, to make an update to the existing code .
However, whatever we use it for, as it is an open source system, anyone can have access to the code . Hence, all those with advanced blockchain knowledge can run a fork.
Also, to create a new blockchain project based on the open source bitcoin there are no impediments. But, on the other hand, to update an existing code and implement it in a definitive way, a prior consensus is necessary .
Therefore, having seen what we have seen, we can define the hard fork as an intentional fork with the aim of updating or redesigning the code . This can lead to various results, such as increasing the size of the blocks , or a change in the rules of the system .
Types of Forks or forks
We find several types of forks or forks that we will use for one thing or another, depending on what we want to do.
Soft fork or soft forks
A soft fork is a consensual update of bitcoin’s open source . When we talk about soft, we refer to soft, therefore, it is used to identify when changes in the code do not have an exaggerated impact on the system , and even the result is compatible with previous versions, therefore, they can coexist in the same network bitcoin without problems.
This type of forks are more difficult to implement in code than strong ones , since compatibility with past versions of the software must be taken care of, which adds limitations when programming.
Bumpy fork or strong forks
Crash forks occur when system developers make mistakes while re- forking to repair the errors. This error causes the creation of a second chain of blocks that is based on the new version of the software. Therefore, the blockchain accidentally forks .
Differences between soft and strong forks
In both soft forks and hard forks , users are the ones who must participate in updating the network , either by downloading new software and launching updated nodes, or by abstaining from doing so, if they so decide. However, it should be noted that soft forks do not exclude those who do not update, while strong ones do.
For example, when the forks are used to update the network in question , it is necessary to reach the threshold of adoption by the nodes of the network, previously agreed and implemented in code by the developers of the protocol.
On the other hand, if what you want is to create a new cryptocurrency , consensus is not a problem. The developers of the new blockchain specify the new parameters and a starting point regarding the bifurcated chain. Either zero as happens in the case of Litecoin or a specific block height as in the case of Bcash.
As for hard forks, once these are activated, it is possible to start a kind of market game, which can end in one of the following scenarios:
The old or new chain is left desolate
When the old or new chain is desolate and the remaining ones are active, with nodes and miners mostly migrated to the chain , it is possible that the miners remain in the minority chain or take time to move to the longer ones . If this happens, money is likely to be lost . This is a common scenario when it comes to a scheduled update .
The two chains survive by dividing the value of each cryptocurrency
We find cases in which cryptocurrencies survive, and the processing power and value of each of them is divided according to what the market determines . This scenario usually occurs in contentious or controversial hard forks cases . An example is found in Ethereum and Ethereum Classic.
The chain that initiates the fork is foreign to the main chain
When the chain that initiates the fork is totally foreign to the main chain, it gives life to what is known as altcoin , and this does not necessarily affect the processing power or market value of the original chain.
Therefore, to make a summary and make it clearer to us what the forks of the blockchain are, we must bear in mind that:
- They are difficult to program.
- They lower the consensus rules.
- Deployment does not imply updating by all nodes on the network.
- They are easier to program.
- Add or change current consensus rules.
- Its implementation includes a mandatory update of the nodes or exclusion from the network. If you don’t, you can derive to independent strings.
Thanks to hard forks, we will be able to modify our chain of blocks without having to create a new project, since this new blockchain will start from an existing project.
Creating forks is not an easy task, but if you want to learn how to create your cryptocurrencies through the use of blockchains, we recommend our Master in Blockchain and Fintech , with which you will learn how to create a blockchain and a fintech network from scratch. You can now train in the technology of the future!
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How to Create Account in EXMO step by step
In this article you will learn how to register in EXMO in 2022, as you well know it is a cryptocurrency platform to trade, as well as buy and sell digital currencies. Next, we are going to make you a quick and easy guide to create your account.
How to open an account in Exmo.com step by step
Access the official website of EXMO to be able to register for free.
At the top right you will have a Registration button, click on it and there you will open a form to place basic data such as username, email, telephone, password and its confirmation, as well as the acceptance of terms and conditions of the platform.
Likewise, if you want you can subscribe to receive news you just have to activate the option. then activate the captcha and click on “Registration”
Phone and email verification
They will send you an SMS to the registered phone to place the verification code and give it confirmation. The same will happen with the email, in which they will send you an email with a link to confirm the account and activate it.
Once you have completed all the registration, you must verify your account, this is quite important that you do it so that you do not have limitations, it is a financial platform and as such, by regulation you must verify your identity and address.
- For identity, you can do it through your ID, passport or other identity document, also a selfie with the document, you can support yourself by linking the mobile if you do not have a webcam.
- In the case of the address, it would be verified with a bill for services such as electricity, water or other document where they can verify your location or residence, this is to raise the limits further.
- For the card, you need to enter your card details and even take a photo and attach it.
Ideally, you should verify everything, but the first thing is the identity, in which you will be required name, surname, middle name in the case you have. Secondly, you will be asked to identify what type of document you are going to use to identify yourself, for example, the DNI.
After that, you must upload a photo of the front and back of the identity document, if you do not have them at hand, you can do it with your mobile and send it to you by mail or web whapsapp or another application, and then upload it from the computer.
Once this is done, it will request a selfie with specific details, where you must write down on a paper the word EXMO, followed by the date of the day of the photo and hold the DNI without covering anything, there you capture the photo and attach it, with these steps you will already be in the process of verifying the identity.
Likewise, you can do it to verify the address with a receipt and in the case of the card you must do the same, they are similar processes quite simple, the idea is that you complete the entire registration process.
Another important point regarding registration is the security configuration in which you can add extra protection and have two-step authentication. Likewise, you can observe other options such as personal information, which you can review carefully.
How to create an account on Poloniex step by step
In this article you will learn how to register with Poloniex in 2022, it is a cryptocurrency trading platform, where you can trade with margin or leverage and you can also do hodl. Here’s a step-by-step way to create an account on Poloniex.
Go to the official website of Poloniex
Access the Poloniex registration page to later follow the step by step that we will give you to register for free.
Select “Sing Up”
Once you are on the platform you must select in the left menu “Sing Up”, where you must enter the email and password, the latter you must confirm it. Additionally, you must place the referral code (optional), as well as accept the terms and policies that govern this page.
Verify your email
Once the previous form has been completed, you must check the email where a link will be sent for the purposes of verifying the email, in order to continue with the account registration process.
With the email and password data entered, we select “Log In” and access. Among the important things that there are is the “profile”, where you will have to verify your account.
If you want to apply margin for trading or leverage you must verify your profile in “Upgrade” you will be able to select other aspects that will help you verify your identity, you will probably be asked to upload a file, such as a photo of the DNI or an invoice to verify the address.
Then, in the event that you want to use the future option that allows margin up to one hundred leverage, you have to have verified these things.
This request is totally normal, since it is required by all financial platforms by legal issue, with this you would already have verified level 2 and with it you would not have any type of limit.
Right now, you could make all kinds of deposits, normal purchases with certain fairly high limits.
Two-factor authentication verification
To protect your account you can activate 2FA this is double authentication code, so you must enter a code apart from the password to be able to log in.
How to Invest in Cryptocurrencies on Skrill
If you are one of those investors who do not like to deal with many complicated orders, but prefer to hold long-term, then Skrill is an excellent alternative for you. With the simplicity that characterizes it.
But the question is, how to invest in cryptocurrencies within Skrill? The answer will be shown in this article.
But first log in to your Skrill account, then you could already start the step by step that will be shown below.
Access Skrill’s Cryptocurrency Investment Options
Like any financial platform, Skrill puts at your disposal tools so that you can invest in cryptocurrencies within yourself, doing so in a simple and comfortable way. To access these tools, below, we will describe the following procedure:
Within the home screen of your account, in the left sidebar, find and tap on Cryptocurrencies.
Important: It is likely that when you enter this section, you will be asked to accept some terms or similar.
Once there, you are presented with different options in terms of cryptocurrencies. From among these, you will select Invest now, clicking on this option.
Once you access that section, you will be shown an extensive list of existing cryptos in Skrill. In each of which, you are given a Trade option. If you click on any of these, you would enter their trading options.
When you have entered the crypto you chose, you will see a Buy – Sell panel.
Ways to trade cryptocurrencies in Skrill.com
In this buy-sell panel or trading box, you will have some options that will allow you to perform these operations:
Steps to buy cryptocurrencies within Skrill
First of all, talking about the purchase of cryptocurrencies in the Instant mode (which is the usual one), you will be able to do the following:
Select the currency in which you want to buy cryptos.
Set the amount to spend that, for its purposes, must be a minimum of 10 EUR (You are also shown the balance you have available).
Select the cryptocurrency in which you are going to invest.
See what you are going to receive in cryptos in equivalence for what you have invested.
See the commission you will be charged for that transaction.
When you have everything ready, then you can click Next.
After this, you will be able to see the summary of the entire operation; you will be told everything you have added, such as the amount and what you would receive, and also the commission charge, which will be added to the total amount to be spent. If you agree with everything, you can click on Confirm.
Steps to Sell Cryptocurrencies within Skrill
There is not much to comment on in the case of selling your cryptos within Skrill, as they are basically the same steps as in the case of the purchase:
You establish the type of crypto that you are going to sell (and that logically, you should own).
You indicate the amount of cryptocurrencies to sell directly or, if you prefer, using the percentage indicators.
Select the currency in which you want to receive the funds in equivalence.
See how much you will receive, in the same way as the previous case.
Having this ready too, you would click Next.
Following this, you must also click on Confirm in a summary similar to that of the case of the purchase, where you will see important data with which, if you agree, you can proceed to the respective confirmation.
Some other options that Skrill gives you to trade
The options you have in Skrill to trade are very practical and easy to use. And for your convenience, they are not numerous. Here’s what you can find on Skrill for when you want to trade on it:
The Portfolio section
In this section you have at hand some useful things for your negotiations, such as:
The Watchlist, with which you can keep abreast of the indices of your cryptos in the market.
Alerts and orders. With these options you are given the possibility to mark an index within the cryptocurrency, which, if the price reaches it, this will be notified to your email or mobile, as you have it configured.
Recent activity. It is the section where you will get your last financial movements, when it comes to purchases and sales, as is logical.
The Trade section
Within this section, you can do what you are told below:
Visualization of Graphs. This will allow you to take a look at the stock market movement in a not at all complex interface (you can also see the current trend that the market has in terms of sellers and buyers).
As you can see, the trading system within Skrill is not complicated. They are few and simple options, but with the same utility for people like you who do not want to get too entangled in the stock market issue, but to play it safe, but in a simple way.
This tutorial summarizes it this way so that you have a general idea when investing in cryptocurrencies within Skrill.