Crypto Forks: Comparing Cryptocurrency Forks

Introduction:

Cryptocurrency networks can change their rules, and sometimes they split into different versions. This guide explains three types of splits: evil forks, soft forks, and hard forks. We’ll look at what they are, why they happen, and what they mean for people using cryptocurrencies.

1. Evil Fork:

a) What is it?

An evil fork happens when a group of people decides to break away from the main cryptocurrency network to create a new one. Unlike other types of forks, evil forks are meant to cause trouble for the original network.

b) Why do they happen?

Evil forks usually happen because of disagreements among people in the cryptocurrency community. Some people might want to challenge the original network or push their own ideas.

Example:

Bitcoin Private (BTCP) was created from an evil fork of two other cryptocurrencies, Zclassic (ZCL) and Bitcoin (BTC). Some people took information from these networks without permission to make a new one.

c) What are the effects?

Evil forks can confuse users and split the community. They create different versions of the cryptocurrency, which can lead to less trust and support.

2. Soft Fork:

a) What is it?

A soft fork is a change to the rules of a cryptocurrency that still allows older versions to work. It’s like adding new features while keeping the old ones.

b) Why do they happen?

Soft forks are usually made to improve security or add new features without causing too much disruption.

Example:

The Segregated Witness (SegWit) update in Bitcoin was a soft fork that helped make transactions faster and more secure.

c) What are the effects?

Soft forks can cause temporary confusion until most users update their software. However, they try to keep things running smoothly for everyone.

3. Hard Fork:

a) What is it?

A hard fork is a big change to the rules that creates a completely new version of the cryptocurrency. It’s like splitting into two separate paths.

b) Why do they happen?

Hard forks often happen because of major disagreements about how the network should work or to introduce significant changes.

Example:

Ethereum split into two chains: Ethereum (ETH) and Ethereum Classic (ETC) after a disagreement about how to handle a hack.

c) What are the effects?

Hard forks can split the community and resources between the two versions. Users have to choose which one to support, which can create confusion.

Comparison:

a) Intention:

Evil forks aim to cause trouble, while soft and hard forks aim to improve or change the network.

b) Backward Compatibility:

Evil forks don’t care about compatibility, while soft forks try to keep older versions working, and hard forks create a new version.

c) Network Fragmentation:

Evil and hard forks can split the network, while soft forks try to keep things running smoothly.

d) Consensus:

Evil forks usually lack support, while soft and hard forks need agreement from the community to work.

e) Resources and Support:

Evil forks often lack community support, while soft and hard forks need the community to adopt them for success.

Conclusion:

Evil forks, soft forks, and hard forks are different ways that cryptocurrency networks can change. Understanding these differences helps everyone involved in cryptocurrencies navigate changes and support innovation.

This article takes inspiration from a lesson found in 15.S12 at MIT.