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Wisdom Finance
@wisdomfinance
Have you Ever seen a coin suddenly get a “Classic” or “Cash” version and thought; what the heck just happened? One minute it’s just Ethereum... Next minute there’s Ethereum Classic. Or Bitcoin suddenly gives birth to Bitcoin Cash.. etc You may ask questions like: Why do these splits happen? Who decides? And what does it mean for your crypto? It all comes down to something called FORKING. Forking is a powerful mechanism that lets blockchains evolve, adapt, or divide. But don’t worry... We’re not diving into code. This thread will break it all down in clear, simple, and interesting terms anyone can understand. You’ll walk away knowing: What forking really means The different types of forks Why forks happen How they affect coins, communities, and you Let’s get into it.
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Wisdom Finance
@wisdomfinance
What is Forking in Blockchain? Forking happens when a blockchain needs to make a change, whether it’s to fix a bug, add new features, or resolve a disagreement in the community. But here’s the key part: Instead of shutting down or restarting, the blockchain simply splits, creating a new version of itself. Think of it like a road trip: You’re driving down a single road (the original blockchain), and suddenly, the road forks into two paths. One path keeps going with the old rules The other path starts fresh with new rules Both roads share the same past; the same GPS history, same miles logged, but from this fork onward, they go their own way. This is what happens during a blockchain fork. From a single chain, now there are two blockchains , each processing its own transactions and building its own future.
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Wisdom Finance pfp
Wisdom Finance
@wisdomfinance
When a fork happens in a blockchain, it’s like a shared story that suddenly splits into two different books. Both versions start with the exact same history, Same transactions, same accounts, same balances up to the point of the fork. But from that moment onward, they begin writing their own separate futures. Each blockchain: Processes different transactions Validates new blocks with different rules May have its own coin, developers, and community It's like two siblings raised in the same home, but who grow up to live very different lives. One might keep the original name and vision… The other might rebrand, upgrade the rules, or chase new goals. For example: Before the Ethereum fork in 2016, all ETH and ETC holders were the same. After the fork, people held both ETH and ETC—two coins, two chains, two directions
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Wisdom Finance
@wisdomfinance
Why Do Forks Happen? 1. Updates to the Blockchain (Disagreements on Rules): Sometimes, a group of developers or community members wants to upgrade the blockchain, maybe to make it faster, cheaper, or more scalable. But not everyone always agrees. Some people may like the old rules. Others may want something totally new. When there’s no consensus, a fork allows each group to go their own way. Example: Bitcoin Cash was created because some wanted bigger block sizes for faster transactions. When others disagreed, the network split. 2. Security Fixes : If a major bug or hack is discovered, time is critical. In some cases, the only way to reverse damage or patch vulnerabilities is by creating a fork. This helps the blockchain “roll back” to a safer state or remove compromised funds.
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