Bitcoin forks have evolved from the bitcoins and work on the same technology with slight differences in their nature. The main motive of the Bitcoin was to provide access to the digital currencies in the global community, but some people differed in their opinion and the community fractured and forks were made.
There are many different forks of popular Blockchains in the crypto market. Some of the popular Bitcoins forks are:
- Bitcoin Cash
- Bitcoin Diamond
- Bitcoin Gold
What is the use of Bitcoin forks?
Bitcoin forks were launched by some people of the crypto community because they felt that the Bitcoin has become too centralized because the early adopters have a large supply of BTC and even miners have acquired a lot of BTC.
Bitcoin Gold was launched to bring Bitcoin back to where it was in the initial days and giving everyone an equal chance of mining Bitcoin gold. It is also a way of making it decentralized as per its initial motive.
Bitcoin Diamond was launched to correct some flaws and faults in the existing system of the Bitcoin such as high transaction fees, transaction time and coin adoption at a later stage.
Bitcoin Gold and Bitcoin diamond are tied completely to the bitcoin and they are exchangeable for Bitcoins. They act like a saving account for Bitcoins.
The main advantage of Bitcoin forks is that they utilize the brand image of Bitcoin which is the most valuable cryptocurrency in the market and will remain so in the next decade. It will not only make bitcoin fork coins stable but will also bring stability to Bitcoin itself.
Features of Bitcoin Forks
Highly Secure: Bitcoin forks are more secure than Bitcoin as they have a higher level of encryption and transactions are more private making them less traceable and more private.
More Decentralized: Bitcoin gold and Bitcoin diamond have more participation as the barrier to entry in the mining is lowered. They have an ASIC-resistant algorithm which makes them more decentralized.
Increased Scalability: In Bitcoin Diamond, the block size is reduced to increase scalability and reduce congestion in the blockchain as compared to Bitcoin.