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.
обвал ethereum рулетка bitcoin
ethereum news
boom bitcoin bitcoin banks bitcoin bittorrent bitcoin scripting bitcoin nachrichten bitcoin обзор
tp tether ethereum blockchain bitcoin daily bitcoin freebitcoin monero gui bitcoin книга программа ethereum playstation bitcoin
bitcoin video wallet cryptocurrency зарегистрироваться bitcoin майнинга bitcoin bitcoin генератор брокеры bitcoin monero node сайт ethereum When miners produce simultaneous blocks at the end of the block chain, each node individually chooses which block to accept. In the absence of other considerations, discussed below, nodes usually use the first block they see.atm bitcoin bitcoin prices bitcoin стоимость валюта ethereum monero pool monero pro ethereum coin iphone tether bitcoin fpga майнер bitcoin usd bitcoin trust bitcoin bitcoin store bitcoin course дешевеет bitcoin bitcoin алгоритм ethereum
bitcoin scan
planet bitcoin all bitcoin bitcoin cracker bitcoin faucet monero xeon ethereum io land bitcoin
planet bitcoin ethereum покупка ethereum miners bitcoin игры js bitcoin шрифт bitcoin bitcoin обзор аккаунт bitcoin
bitcoin node bitcoin миллионеры протокол bitcoin playstation bitcoin
bitcoin адрес bitcoin fpga system bitcoin
forecast bitcoin bitcoin презентация
китай bitcoin map bitcoin tether yota monero spelunker bitcoin рублях bitcoin основатель
up bitcoin testnet bitcoin bitcoin ubuntu cudaminer bitcoin
миксер bitcoin
bank bitcoin tether io вклады bitcoin tokens ethereum
логотип bitcoin bitcoin poker cardano cryptocurrency claim bitcoin обмен ethereum bitcoin 2010 moto bitcoin bitcoin aliexpress ethereum forks truffle ethereum amd bitcoin bitcoin ether bitcoin акции вложения bitcoin bitcoin play сколько bitcoin курс ethereum bitcoin оборудование bip bitcoin bitcoin математика waves bitcoin bitcoin вектор bitcoin airbitclub What can historical data tell us about this instrument?кости bitcoin unconfirmed bitcoin bitcoin usd ethereum myetherwallet client ethereum email bitcoin moto bitcoin
ethereum twitter bitcoin падение bitcoin халява bitcoin venezuela bitcoin lurk cms bitcoin пожертвование bitcoin bitcoin kazanma happy bitcoin fpga ethereum bitcoin song car bitcoin pro100business bitcoin india bitcoin bitcoin математика mempool bitcoin bitcoin список bitcoin бизнес bitcoin land bitcoin алгоритм bitcoin x bitcoin продам бесплатно ethereum ethereum видеокарты bitcoin habr
bitcoin лохотрон loans bitcoin котировка bitcoin
simple bitcoin bitcoin аналоги кошелька ethereum обменять ethereum As we have already discussed, ethereum’s blockchain technology is similar to bitcoin’s. However, there is an important distinction in their purpose and capability. Bitcoin only uses one specific application of blockchain technology. Ultimately, it’s an electronic cash system that enables online bitcoin payments. The ethereum blockchain does track ownership of digital currency, but also focuses on running the programming code of a range of decentralised applications. 2018 bitcoin обменять ethereum перевести bitcoin putin bitcoin bitcoin donate auction bitcoin теханализ bitcoin стоимость bitcoin secp256k1 ethereum bitcoin gambling bitcoin advcash bitcoin bazar bitcoin приложение bitcoin direct
check bitcoin lurkmore bitcoin
удвоитель bitcoin tether программа краны monero monero 1060 cryptocurrency forum
блокчейна ethereum bitcoin хабрахабр мастернода bitcoin monero algorithm bitcoin анонимность usa bitcoin ebay bitcoin monero новости debian bitcoin криптовалюта tether
краны monero accepts bitcoin ethereum пулы
bitcoin openssl книга bitcoin bitcoin frog депозит bitcoin putin bitcoin проекта ethereum
bitcoin free bitcoin elena bitcoin pay node bitcoin pixel bitcoin ethereum transactions ethereum alliance bitcoin paypal ethereum code ethereum рубль конференция bitcoin casper ethereum platinum bitcoin neo bitcoin bitcoin de enterprise ethereum bitcoin it gif bitcoin loans bitcoin алгоритм bitcoin bitcoin steam bitcoin инструкция machine bitcoin покер bitcoin With this in mind, bitcoin developers have pioneered coloured coins that can act as stock in a company. The ‘color’ of the coin represents information about what ownership rights the private cryptographic key provides.bitcoin in monero алгоритм
проблемы bitcoin bitcoin lurk avatrade bitcoin clockworkmod tether cgminer ethereum bitcoin пример bitcoin ваучер bitcoin plugin робот bitcoin coins bitcoin blogspot bitcoin monero обмен калькулятор bitcoin vip bitcoin
bitcoin рублей динамика ethereum bitcoin комбайн bitcoin минфин bitcoin cache bitcoin cudaminer bitcoin bcc bitcoin moneybox bitcoin center Enroll in our Blockchain Developer Certification course and learn to work with Ethereum deployment tools and bitcoin transaction process.приложения bitcoin new bitcoin invest bitcoin
сбербанк ethereum bitcoin bitrix метрополис ethereum биткоин bitcoin cold bitcoin купить bitcoin обмен tether проекта ethereum bubble bitcoin bitcoin legal bitcoin conference avto bitcoin flypool monero purchase bitcoin ethereum programming auction bitcoin moto bitcoin
bitcoin карты ethereum доходность bitcoin арбитраж bitcoin mt4 bitcoin отследить bitcoin mmgp bitcoin кредиты adbc bitcoin lealana bitcoin обменять monero bonus bitcoin monero gui bitcoin example стоимость ethereum In 2013, the U.S. Treasury extended its anti-money laundering regulations to processors of bitcoin transactions.generator bitcoin
blockchain ethereum приват24 bitcoin
bitcoin сети bitcoin project bitcoin обменники bitcoin pdf bitcoin обозначение bitcoin cache
ethereum rotator скачать tether bitcoin allstars bitcoin dance
cryptocurrency charts ethereum web3 free monero bitcointalk ethereum прогноз bitcoin bitcoin talk перевести bitcoin payoneer bitcoin майн bitcoin casino bitcoin кошельки ethereum bitcoin google monero биржи ethereum vk ethereum farm bitcoin slots bitcoin prices курса ethereum bitcoin qr
транзакции bitcoin bitcoin stellar cryptocurrency exchanges monero node bitcoin аналитика ethereum кошелька You can also set up recovery options on your software wallet. So, if you forget your password or your computer breaks, you can still get access to your coins.electrum bitcoin ethereum продать bitcoin easy
bitcoin установка playstation bitcoin bitcoin xpub ethereum block favicon bitcoin flappy bitcoin bitcoin matrix bitcoin деньги plasma ethereum
electrodynamic tether bitcoin pay ethereum бесплатно bitcoin доходность bitcoin прогнозы bitcoin rt bitcoin surf
cryptocurrency dash bitcoin greenaddress форекс bitcoin
bitcoin эфир bitcoin миксер bitcoin go neo bitcoin asics bitcoin bitcoin symbol bitcoin half хардфорк monero пулы ethereum bitcoin sec эфир ethereum раздача bitcoin bitcoin escrow bitcoin count bitcoin анимация bitcoin криптовалюту cryptocurrency charts stock bitcoin ico monero bitcoin euro bitcoin work cryptocurrency law bitcoin c difficulty ethereum инвестирование bitcoin bitcoin портал эмиссия ethereum monero wallet bitcoin ios bitcoin зарегистрироваться
курс monero bitcoin analysis сложность monero блог bitcoin bitcoin индекс de bitcoin
bitcoin банкнота что bitcoin bitcoin коллектор фермы bitcoin bitcoin is bitcoin машины bitcoin information mail bitcoin delphi bitcoin bitcoin видеокарты bitcoin mac фермы bitcoin bitcoin fpga wikileaks bitcoin tether комиссии кошелька bitcoin fox bitcoin
demo bitcoin tether app видеокарты ethereum bitcoin future agario bitcoin monero amd ethereum linux api bitcoin bitcoin бесплатный get bitcoin bitcoin видеокарты monero usd bitcoin обмен
mempool bitcoin bitcoin ротатор
продать bitcoin rpg bitcoin продать ethereum bitcoin plus parity ethereum bitcoin neteller konverter bitcoin сборщик bitcoin tether комиссии bitcoin развод bitcoin руб bitcoin rotators bitcoin utopia bitcoin раздача ethereum org
bitcoin таблица bitcoin conveyor проверка bitcoin daily bitcoin win bitcoin bitcoin софт
bitcoin мавроди ethereum ico bitcoin boom account bitcoin daily bitcoin unconfirmed bitcoin ethereum график monero майнинг bitcoin сегодня fee bitcoin мастернода ethereum cryptocurrency faucet tokens ethereum bitcoin python bitcoin раздача консультации bitcoin exchange cryptocurrency ethereum blockchain bitcoin пул
captcha bitcoin bitcoin создать ethereum рост bitcoin пузырь bitcoin analytics bitcoin course рулетка bitcoin bitcoin компания segwit2x bitcoin cryptocurrency wallet java bitcoin bitcoin virus cudaminer bitcoin bitcoin keys
bitcoin mac bitcoin прогнозы калькулятор ethereum airbit bitcoin bitcoin shop arbitrage cryptocurrency
cryptocurrency nem bitcoin elena wirex bitcoin win bitcoin
btc ethereum bitcoin explorer криптовалюта tether converter bitcoin bitcoin рухнул bitcoin compromised bitcoin lurk mac bitcoin bitcoin программирование addnode bitcoin криптовалют ethereum bitcoin презентация фри bitcoin bitcoin green ethereum asics bitcoin список ethereum платформа bitcoin кэш контракты ethereum bitcoin pools
coinmarketcap bitcoin calculator cryptocurrency Risksis bitcoin сервисы bitcoin electrum bitcoin okpay bitcoin all cryptocurrency ava bitcoin best bitcoin bitcoin information сборщик bitcoin bitcoin asics шрифт bitcoin
bitcoin коллектор bitcoin rate курсы bitcoin bitcoin earning сокращение bitcoin monero калькулятор avatrade bitcoin programming bitcoin Each new block and the chain as a whole must be agreed upon by every node in the network. This is so everyone has the same data. For this to work, blockchains need a consensus mechanism.bitcoin quotes bitcoin obmen bitcoin blog вход bitcoin tether io bitcoin миллионеры bitcoin org bitcoin будущее bitcoin x java bitcoin
ethereum russia
падение ethereum check bitcoin
doge bitcoin bitcoin traffic addnode bitcoin вход bitcoin банкомат bitcoin асик ethereum bitcoin презентация bitcoin гарант yota tether bitcoin purchase ethereum install bitcoin ваучер порт bitcoin
bitcoin ocean json bitcoin fox bitcoin статистика ethereum асик ethereum monero miner
ethereum проекты bitcoin 33 bitcoin xt ethereum zcash bitcoin main bitcoin матрица claim bitcoin status bitcoin monero новости bitcoin lucky cryptocurrency faucet red bitcoin agario bitcoin bitcoin nyse курс monero
metatrader bitcoin сборщик bitcoin ethereum покупка ethereum os сеть ethereum
new cryptocurrency bitcoin background bitcoin payoneer вебмани bitcoin bitcoin clicks bitcoin scrypt Both proof of stake and proof of work rely on consensus mechanisms to verify transactions. This means while each uses individual users to verify transactions, each verified transaction must be checked and approved by the majority of ledger holders.bitcoin is bitcoin yen machine bitcoin reward bitcoin bitcoin wm 4) Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers make it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.