The cryptocurrency market came into existence after the developmental Bitcoin by programmer Satoshi Nakamoto (pseudonym) in 2009. This resulted in the birth of a new trading platform which was earlier dominated by forex and stock markets. Within a few years, more than 5000 different currencies were floating in the cryptocurrency market. As of now, there are more than 2000 active currencies available for trading and making transactions possible. Bigger giants like Visa are investing in crypto startups which have given high hopes to new investors. The biggest problem with the cryptocurrency market is that it has not reached the common man. Understanding and trading in Bitcoin require a decent amount of technical knowledge to know what a cryptocurrency is and how does the blockchain technology work.
Although there has a significant rise in the number of traders and investors, it still lacks what the printed legal tender has to offer. The intangible nature of cryptocurrency has made it a trading tool of the future. Given this state of misinformation, even people in the industry are not familiar with the jargons and terms of this market and such a common lingo is ‘fork’. A fork in the cryptocurrency market is a technological update of the software regulating a network formed by a consensus of existing users. In simple words, alternatives or altcoins of an existing coin is referred to as a fork.
The most significant player in this market, Bitcoin saw the release of a hard fork recently by the name of Bitcoin Cash which was developed as a rip off from the structure of Bitcoin Classic. It is essential that we see each of these coins in a spectrum rather than individual coins. For example, Bitcoin will be one singular spectrum, while Ethereum and its altcoins will constitute an entirely different spectrum.
Ethereum came up with a much-awaited hard fork in the first few days of January 2020, Muir Glacier. More than 90 per cent of Ethereum’s users were included in this new fork. This update increases the delay time, diffusing the chances of accommodating fewer transactions in a block, this will also reduce the charges of making transactions and the cost of fitting these transactions in each secured block. The reason behind this is that as the time of these blocks increases the value of accommodation also skyrockets with reducing the creation of blocks per day. These actions were taken under the Ethereum Improvement Proposal (EIP) to make sure that the difficulty bomb does not go off. This update was under construction for quite some time now, and Ethereum successfully mined the block in the first week of January 2020.