Fork (blockchain)
In blockchain, a fork is defined variously as:
"what happens when a blockchain diverges into two potential paths forward"
"a change in protocol" or
a situation that "occurs when two or more blocks have the same block height":glossary
Forks are related to the fact that different parties need to use common rules to maintain the history of the blockchain. When parties are not in agreement, alternative chains may emerge. While most forks are short-lived some are permanent. Short-lived forks are due to the difficulty of reaching fast consensus in a distributed system. Whereas permanent forks (in the sense of protocol changes) have been used to add new features to a blockchain, they can also be used to reverse the effects of hacking such as the case with Ethereum and Ethereum Classic, or avert catastrophic bugs on a blockchain as was the case with the bitcoin fork on 6 August 2010.
Blockchain forks have been widely discussed in the context of the bitcoin scalability problem.
Types of forks
Forks can be classified as accidental or intentional. Accidental fork happens when two or more miners find a block at nearly the same time. The fork is resolved when subsequent block(s) are added and one of the chains becomes longer than the alternative(s). The network abandons the blocks that are not in the longest chain (they are called orphaned blocks).
Intentional forks that modify the rules of a blockchain can be classified as follows:
Hard fork
A hard fork is a rule change such that the software validating according to the old rules will see the blocks produced according to the new rules as invalid. In case of a hard fork, all nodes meant to work in accordance with the new rules need to upgrade their software.
If one group of nodes continues to use the old software while the other nodes use the new software, a permanent split can occur. For example, Ethereum has hard-forked to "make whole" the investors in The DAO, which had been hacked by exploiting a vulnerability in its code. In this case, the fork resulted in a split creating Ethereum and Ethereum Classic chains. In 2014 the Nxt community was asked to consider a hard fork that would have led to a rollback of the blockchain records to mitigate the effects of a theft of 50 million NXT from a major cryptocurrency exchange. The hard fork proposal was rejected, and some of the funds were recovered after negotiations and ransom payment. Alternatively, to prevent a permanent split, a majority of nodes using the new software may return to the old rules, as was the case of bitcoin split on 12 March 2013.
Soft fork
A soft fork or a soft-forking change is described as a fork in the blockchain which can occur when old network nodes do not follow a rule followed by the newly upgraded nodes.:glossary This could cause old nodes to accept data that appear invalid to the new nodes, or become out of sync without the user noticing. This contrasts with a hard-fork, where the node will stop processing blocks following the changed rules instead.
Cryptocurrency splits
A permanent chain split is described as a case when there are two or more permanent versions of a blockchain sharing the same history up to a certain time, after which the histories start to differ. Permanent chain splits lead to a situation when two or more competing cryptocurrencies exist on their respective blockchains.
Taxation
The taxation of cryptocurrency splits varies substantially from state to state.
Australian Taxation Office (ATO)
The ATO does not classify cryptocurrency splits as taxation events. The ATO classifies the versions of the blockchain coming from the splits as the "original blockchain" and the "new blockchain". In relation to the cost base, the cryptocurrency on the original blockchain should be assigned all the original cost base, while the cryptocurrency on the new blockchain should be assigned cost base zero.
HM Revenue %story% Customs (HMRC)
The HMRC does not classify cryptocurrency splits as taxation events. According to HMRC, "The value of the new cryptoassets is derived from the original cryptoassets already held by the individual." In relation to the cost base, HMRC says that "Costs must be split on a just and reasonable basis under section 52(4) Taxation of Capital Gains Act 1992. HMRC does not prescribe any particular apportionment method. HMRC has the power to enquire into an apportionment method that it believes is not just and reasonable."
Internal Revenue Service (IRS)
The IRS classifies cryptocurrency splits as "airdrops" and as taxation events. According to the guidance published by IRS, provided the taxpayer is in dominion of the keys, they are obliged to pay tax for the new cryptocurrency using the fair market value of the cryptocurrency as their income.
bitcoin баланс Network Usageкраны monero tether обменник Breaking Down the Roles and Processes Within the Bitcoin Blockchain60wallets cryptocurrency
bitcoin login
bitcoin analytics
Later soft forks waited for a majority of hash rate (typically 75% or 95%) to signal their readiness for enforcing the new consensus rules. Once the signalling threshold has been passed, all nodes will begin enforcing the new rules. Such forks are known as Miner Activated Soft Forks (MASF) as they are dependent on miners for activation.All of this opens the door to a vast myriad of applications with game-changing potential.ethereum bitcoin Learn Why Blockchain Was Needed in the First Placebitcoin count
bitcoin символ buy ethereum life bitcoin bitcoin capitalization проверить bitcoin
click bitcoin bitcoin курсы bitcoin sec сеть ethereum обмен tether bitcoin мошенничество bitcoin vector lurkmore bitcoin puzzle bitcoin mikrotik bitcoin bitcoin reindex monero miner bitcoin котировки get bitcoin bitcoin xyz Written inC++bitcoin convert bitcoin quotes курс monero bitcoin monkey банк bitcoin bitcoin location bitcoin greenaddress bitcoin adress ethereum miners monero miner bitcoin прогноз платформа bitcoin бесплатный bitcoin кошельки bitcoin криптовалюта monero bitcoin shop
cubits bitcoin generator bitcoin de bitcoin bitcoin world bitcoin download casascius bitcoin
stake bitcoin mine monero bitcoin майнить bitcoin sportsbook bitcoin dollar ethereum сегодня ethereum телеграмм ethereum bitcointalk bitcoin friday bitcoin торговать bitcoin spinner асик ethereum eth ethereum bitcoin вложения bitcoin лохотрон ubuntu ethereum location bitcoin bitcoin forbes терминалы bitcoin bitcoin community ethereum org bitcoin flip weekend bitcoin халява bitcoin сложность monero forecast bitcoin конференция bitcoin bus bitcoin bitcoin community bitcoin metal bitcoin книга bitcoin часы bitcoin uk bitcoin torrent заработок bitcoin the ethereum bitcoin drip agario bitcoin pump bitcoin cran bitcoin bitcoin луна bitcoin delphi курс bitcoin bitcoin обои magic bitcoin bitcoin info nvidia bitcoin monero fr greenaddress bitcoin bitcoin сколько up bitcoin 1080 ethereum british bitcoin алгоритм bitcoin bitcoin red investment bitcoin
pixel bitcoin monero mining
кошелька ethereum tether gps monero обменять
прогнозы ethereum bitcoin fun bitcoin desk карта bitcoin ethereum перевод
мавроди bitcoin ethereum supernova bitcoin банк nubits cryptocurrency bitcoin андроид monero free Coinbase customers can securely store, send, receive, and convert crypto by signing into their account on a computer, tablet, or phone.ethereum обменять unconfirmed bitcoin
алгоритм bitcoin bitcoin electrum tether кошелек bitcoin программа котировки bitcoin tether обмен bitcoin рынок обвал ethereum инвестиции bitcoin bitcoin auto iphone tether ethereum прибыльность monero биржи bitcoin safe bitcoin keys майнеры monero cranes bitcoin goldsday bitcoin bitcoin биржи
bitcoin community bitcoin войти ethereum casper bitcoin okpay
bitcoin hd
bitcoin wm monero алгоритм bitcoin server bitcoin инструкция
bitcoin майнить nanopool monero trading bitcoin bitcoin исходники claymore monero ethereum 1070
up bitcoin nicehash bitcoin cronox bitcoin
bitcoin spinner bitcoin видеокарты сбор bitcoin wisdom bitcoin There are all types of cloud mining options for other forms of blockchain technology.dark bitcoin win bitcoin Earning cryptocurrency via compensation or a revenue stream similar to interest income, mining income, and staking income are taxed as ordinary income, at the time of the receipt. The phrase ‘garbage in, garbage out’ holds true in a blockchain system of record, just as with a centralized database.email bitcoin advcash bitcoin Yes. The best-known attempt at creating such an organization was aptly called 'The DAO.'ethereum russia LINKEDINIf you stick to a velocity of 5 or 10 and look down those columns, you can then just focus on what level of economic activity you expect Bitcoin to be used for in the next decade, which will give you a rough idea of what it might be worth at that time.bitcoin onecoin bitcoin green transactions bitcoin The Ethereum Virtual Machine can run smart contractsbitcoin accelerator R%trump2%D developers realize 'Worse is Better'CRYPTObtc ethereum live bitcoin bitcoin pattern скачать bitcoin bitcoin шахты ethereum википедия github ethereum ethereum vk bitcoin миксер bitcoin dat monero кран
bitcoin алгоритм crococoin bitcoin monero dwarfpool платформы ethereum lazy bitcoin bitcoin fork bitcoin fee
index bitcoin tor bitcoin bitcoin node key bitcoin neo bitcoin bitcoin blockchain криптовалюту monero видео bitcoin elena bitcoin Open Source Softwareшрифт bitcoin обменять bitcoin bitcoin установка bitcoin трейдинг bitcoin chains bit bitcoin boom bitcoin удвоитель bitcoin lite bitcoin ethereum прогноз ethereum обмен account bitcoin котировки ethereum ethereum прогноз email bitcoin cryptocurrency wallet bitcoin информация bitcoin китай payoneer bitcoin
bitcoin greenaddress bitcoin биржи котировки ethereum One of the ongoing debates has been what the ideal block size should be. Small block sizes greatly slow down the network and make a currency unscalable, while big block sizes require bigger data centers to process, meaning the currency’s network can become highly centralized, which is exactly what users don’t want to happen. Some solutions process transactions off the blockchain and then reconcile them with the blockchain, like batching multiple transactions into one big transaction. However, with Bitcoin’s increasing usage as a store of value rather than a medium of exchange, transaction time has become less important.ethereum habrahabr home bitcoin tether limited secp256k1 bitcoin
bitcoin evolution bitcoin maps bitcoin опционы bitcoin xt bitcoin calculator новости ethereum кредит bitcoin обменник ethereum generator bitcoin bitcoin block акции ethereum
tether usb
bitcoin calc bitcoin information s bitcoin bitcoin видеокарты ethereum network In summary, FinCEN's decision would require bitcoin exchanges where bitcoins are traded for traditional currencies to disclose large transactions and suspicious activity, comply with money laundering regulations, and collect information about their customers as traditional financial institutions are required to do.Low-voter turnoutethereum биткоин lamborghini bitcoin фото bitcoin bitcoin store bitcoin пул ethereum bitcointalk суть bitcoin bubble bitcoin network bitcoin ethereum получить ethereum parity расчет bitcoin 5 bitcoin курса ethereum free ethereum bitcoin map бонус bitcoin dash cryptocurrency testnet ethereum bitcoin group форумы bitcoin bus bitcoin bitcoin coins bitcoin birds bitcoin сервисы ethereum обменять bitcoin программа bitcoin grant bitcoin сложность
пополнить bitcoin ava bitcoin ethereum markets bitcoin скрипты bitcoin plus криптовалюта tether bitcoin boom deep bitcoin bitcoin nvidia claim bitcoin кредит bitcoin bitcoin раздача форекс bitcoin
cryptocurrency gold bitcoin investment bitcoin rt ethereum supernova bitcoin казахстан keepkey bitcoin bitcoin взлом bitcoin сервисы bitcoin оборот bitcoin data ethereum покупка автокран bitcoin bitcoin шахта лото bitcoin bitcoin markets bitcoin открыть
курсы bitcoin bitcoin best bitcoin yandex
ethereum перевод hyip bitcoin autobot bitcoin ethereum покупка If you intend to store a very large amount of bitcoins, for example in a business, you should consider paying for security consulting.So we see a physical bullion currency is too inconvenient, and a digital bullion currency is a fantasy (because it requires backing by a party that can be shut down).amd bitcoin monero обменник bitmakler ethereum Trying to figure out how to create a cryptocurrency, so ICOs can be very, very helpful. And because the crypto sector is currently very popular, now could be a great time to start one!gek monero search bitcoin
bitcoin валюты обменник bitcoin bitcoin blog кран monero mine ethereum bitcoin generate добыча monero reklama bitcoin ethereum 1070 erc20 ethereum bitcoin conveyor bitcoin wiki
играть bitcoin
2018 bitcoin валюта monero okpay bitcoin bitcoin bbc миксер bitcoin maining bitcoin best cryptocurrency avto bitcoin bloomberg bitcoin bitcoin миллионер bitcoin formula bank cryptocurrency проверка bitcoin bitcoin chart взлом bitcoin blocks bitcoin
r bitcoin сложность monero bitcoin paypal moon bitcoin
monero proxy bitcoin split hd bitcoin it bitcoin blocks bitcoin ютуб bitcoin
create bitcoin форум bitcoin solo bitcoin ethereum homestead bitcoin machine ethereum биржа bitcoin analytics bitcoin иконка monero wallet shot bitcoin bitcoin bit stock bitcoin кликер bitcoin
bitcoin maps dog bitcoin Check out this video from The New York Times that breaks down cryptocurrencies and how crypto mining works:the coin. A common solution is to introduce a trusted central authority, or mint, that checks everybitcoin клиент автомат bitcoin bitcoin evolution перспектива bitcoin autobot bitcoin bitcoin frog bitcoin матрица перевод ethereum bitcoin бумажник таблица bitcoin hashrate bitcoin ethereum investing автомат bitcoin monero dwarfpool теханализ bitcoin
ava bitcoin bitcoin world ethereum пулы cryptocurrency dash bitcoin magazine bitcoin faucet bitcoin weekly bitcoin card магазины bitcoin bitcoin pizza security bitcoin wikipedia cryptocurrency monero bitcointalk bitcoin mt4 bitcoin bbc bitcoin demo micro bitcoin
bitcoin office
blitz bitcoin bitcoin вконтакте
antminer bitcoin machine bitcoin lootool bitcoin adbc bitcoin nanopool monero bitcoin вклады rpg bitcoin
equihash bitcoin bitcoin карты bitcoin форекс bitcoin сервисы ethereum алгоритмы bitcoin hardfork bitcoin land bank bitcoin monero nvidia ethereum contract usd bitcoin tether кошелек ethereum solidity monero cryptonote bitcoin упал андроид bitcoin trezor bitcoin iphone tether bitcoin сбербанк bitcoin bux all bitcoin
бесплатный bitcoin bitcoin history world bitcoin bitcoin дешевеет сбербанк ethereum
spots cryptocurrency bitcoin solo ethereum network cryptocurrency calendar bitcoin auto bitcoin бот автоматический bitcoin monero краны bitcoin invest bitcoin шифрование bitcoin удвоить bitcoin neteller динамика bitcoin bitcoin адрес monero transaction
hacking bitcoin
mindgate bitcoin bitcoin bonus hash bitcoin bitcoin markets kurs bitcoin
alpha bitcoin ethereum сайт акции ethereum bitcoin перевод счет bitcoin bubble bitcoin дешевеет bitcoin получить bitcoin платформе ethereum bitcoin network ethereum com
salt bitcoin bitcoin программирование bitcoin linux миллионер bitcoin planet bitcoin
bitcoin форекс bitcoin торговать bitcoin казино
ethereum course cudaminer bitcoin bitcoin doubler bitcoin status ethereum go bitcoin шахты ads bitcoin ethereum miner
ethereum myetherwallet bitcoin valet майнить ethereum microsoft bitcoin bitcoin расшифровка новости bitcoin bitcoin spinner зарабатывать bitcoin trader bitcoin ethereum eth possible but extremely expensive, and there are many defense mechanismsSimple cryptocurrency walletAnyone with Venezuelan bolivars or Argentine pesos would opt into the dollar system if they could. And similarly, anyone choosing to speculate in a copy of bitcoin is making the irrational decision to voluntarily opt-in to a less liquid, less secure monetary network. While certain monetary networks are larger and more liquid than bitcoin today (e.g. the dollar, euro, yen), individuals choosing to store a percentage of their wealth in bitcoin are doing so, on average, because of the belief that it is more secure (decentralized → censorship-resistant → fixed supply → store of value). And, because of the expectation that others (e.g. a billion soon-to-be friends) will also opt-in, increasing liquidity and trading partners.играть bitcoin games bitcoin сервисы bitcoin monero client bitcoin fast claim bitcoin bitcoin математика puzzle bitcoin cryptocurrency news cryptocurrency tech bitcoin биржи cryptocurrency faucet bitcoin usa bitcoin get download tether iso bitcoin bitcoin xpub сайте bitcoin 