What is hardwork? Explain on the example Bitcoin Cash

November 15, 2018, hosted one of the biggest events in the industry of cryptocurrency — hardwork Bitcoin Cash. To the end around this procedure, there were many inaccuracies in the media, so as to understand the intricacies of creating forks in the crypt is quite difficult. Today we will try to correct this misunderstanding and to tell you about the basics of updates to the blockchain of the cryptocurrency.

The contents

What you need to know

Before we start talking about softporno, hardforce and other fork, let us briefly deal with a few basic terms. So:

  • the blockchain Protocol defines rules of operation of the cryptocurrency network: how does mining which transactions can be committed, how the network nodes interact with each other. To work online you need to follow the Protocol;
  • fork — the point in time at which there is another version of the Protocol that differ from the original.

And now to the very popular question: why do we need to update the Protocol?

First, so you can fix bugs found in previous versions. Cryptocurrency is a relatively new invention, they only went up to the stage of development that Fiat has overcome decades ago. Had to try many versions of the paper, font, color and protective materials, to dollar bill became what we know it now.

Secondly, ppl were helping to add new functionality. If we have Windows 10, so the first version of the operating system needed improvements. Code Bitcoin is also improving from year to year. As it is open to all, every developer in the world can make something of ourselves. Of course, its upgrade is accepted only with the consent of cryptocommunist.

Image source — Etiqa Insurance

Third, upgrade the Protocol helps to cancel the transaction. The fight against counterfeiters is the state very hard. But in cryptocurrency, any harm can be minimized by using hard forks, which “rolls back” all transactions from a certain point of time.

What is softporn?

Softpark — this upgrade Protocol, but with backward compatibility.

For example, Russia established a speed limit for drivers. Their speed should be between 40 to 60 kilometers per hour. For example, after some time the government decides to frame shift and introduces a new law: from 45 to 70 km/h For drivers who travel at a speed of 55 km/h, nothing will change. However, those who went 40 km/h, you will need to upgrade your car and accelerate slightly.

The new law of the government can be called softform and to draw a parallel with cryptocurrencies. If you are satisfied, you can not use an updated version of the Protocol. Otherwise, you will have to go through the upgrade.

What is hardwork?

The same example with the drivers. In this context, hardwork will create a “parallel Universe” with its own highways, speeds and blackjack.

Driver Vasya from Moscow who drives a BMW, after hard forks will create “Bob the Cache” from Moscow “Cache” with “Cache of a BMW”. The original double driver will never be able to find a job in Moscow or to ride it on a BMW, as between the two Universes there are no portals. Yeah, sounds like the plot of “Black Mirror”.

Image source — Times of San Diego

Back to the topic of the crypts. After hard forks of the blockchain cryptocurrency is divided into two scenes, between which there are generally no communication, it’s two separate Universes. Each chain has its own history of transactions, which in most cases inherited transaction history of the original cryptocurrency. Usually as a result of hard forks about the old Universe all just forget begin to live in a new one.

Famous hardforce

Like everywhere, there are exceptions to the rule when the continue to live both worlds. Consider a few of them.

Bitcoin Cash

Bitcoin Cash is also a consequence of hard forks — coin separated from the original Bitcoin August 1, 2017. The BCH team led by Roger Ver immediately began an active campaign against the other major cryptocurrencies, but to this day she has not brought their fruits.

DAO

Bitcoin has a black page in history — the fall of Mt. Gox. An event of similar magnitude also occurred in Ethereum, but this time suffered not exchange, and smart contract to the DAO.

Originally Decentralized Autonomous Organization (DAO) was conceived as a venture Fund, a share in which participants receive based on their contributions to the ETH. The project gained popularity and quickly gathered 12.7 million ETH. By then the price of the cryptocurrency is about $ 250 million.

Image source — Decentralize Today

After some time the hacker found in the code DAO a vulnerability that allowed him to steal more than 3.6 million coins Ethereum. So the scammer couldn’t get the money, cryptocommunist voted for hardwork Ether, which returned the funds to the most affected.

What to do if there is hardwork? How not to lose coins?

All hardforce usually proceeds according to a similar scenario that we described above. New universe — a new life. Consider the case when both the world continue to work in the hard forks.

Our washi from Moscow was BMW. He had the car key. In the new Universe, in Moscow the Cache, clone Wasi named Bob, the Cache will also be a car that looks exactly the same as Bob in Moscow. And have her he will, too, because he has the key. Most interesting is that the key to the BMW, and the BMW Cache. If an attacker can move through the Universe, steal the key from washi Cache and steal his BMW in the Cache, it can hijack a BMW and a conventional Vasi.

Bob is afraid to lose everything, and rightly so. How to do it? There are 2 options:

  • do not drive a car and hide the key in the safe, at least until the cloning is completed, and life in the universe will not be adjusted;
  • to supply BMW on a guarded Parking lot and give the key Manager.

The first option is safer, but requires a large mental cost. The safe needs to be reliable. The second option is very simple, Vasya, nothing required, but there is a risk that Parking will be “phony,” and all of cars with it “evaporate” at one point.

Move on to the cryptocurrency. To access means you have the private key. The developers of Bitcoin have a fight, some decided to continue to work as usual, while others wanted to create a new coin Bitcoin is the result of hard forks. You had 1 BTC, and then the fork should be 1 BTC and 1 SuperBTC, if you do it right.

What to do if there is hardwork? How not to lose coins?

To do it yourself

The most reliable option. The main thing here is patience and accuracy. Remember that the private key is the most important thing you have. With the help of the private key can get access to all your funds.

Consider the procedure on the example of a hypothetical fork of Bitcoin. The scheme is applicable to any other coin.

  1. Export a private key from a Bitcoin address and wait for hard forks. If hardwork has already happened doesn’t matter. Do the same thing — esparteria private key;
  2. create a new BTC address and transfer bitcoins to it;
  3. install the wallet for the Bitcoin Super;
  4. import the private key that you obtained in the first stage. You need to access your SuperBTC;
  5. create a new SuperBTC address and put on it all the coins.

As a result, you should be two new addresses, one Bitcoin wallet, another Bitcoin wallet Super. These addresses have not be connected.

In the section FAQ on the service hosting masternode 2Masternodes there are instructions on “How not to lose your wallet? How to make a backup of the wallet and the private key?”. Recommended reading.

To wait out the fork on the stock exchange

Find cryptocurrency exchange with good reputation, which will announce that all owners of Bitcoin will be awarded coins Bitcoin Super. Fingers crossed, you send 1 BTC to this exchange. After hard forks make 2 separate purse — one for BTC and the other for Ieguts — now this is a different cryptocurrency. Send the coins from the exchange to their wallets.

Attention! We strongly recommend to keep your savings on cryptocurrency exchanges. Use the exchange only to exchange one cryptocurrency into other. Read more about how to store Bitcoin and other cryptocurrencies.

More interesting information can be found in our cryptodata.

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