Satoshi Nakamoto announced a revolutionary new type of cash, Bitcoin, in 2009. It was the first of its type and has since inspired hundreds of copycat cryptocurrencies, either directly or indirectly.
Several versions aim to expand on the Bitcoin paradigm, while some opt to tweak it; all demonstrate how this game-changing effort built something remarkable inside modern finance.
Forking is the process of dividing a cryptocurrency into separate but linked blockchains. Bitcoin forks allow users access to new features and services, utilize the full blockchain, and buy and sell newly created currencies at greater prices.
These can, however, pose issues like wallet compatibility, pump, and dump schemes, and abandoned or failed mining.
Recalling the History of Significant Bitcoin Forks
Bitcoin XT: Mike Hearn pioneered the crypto industry when he developed Bitcoin XT in 2014.
The new program sought to increase network performance by boosting block sizes and transaction rates from 1 Megabyte/7 per second to 8 MegaBytes/24 transactions per second – a remarkable achievement!
This ambitious initiative quickly found momentum among users until late summer 2015, when it successfully reached 1000 nodes on its software. However, enthusiasm waned, and no updates were issued, resulting in the project’s website being decommissioned.
Bitcoin Classic: In early 2016, Bitcoin Classic originated in response to Bitcoin XT community members’ request for a larger block size.
Because of its high node count, which reached over 2,000 in just two months after its debut, the initial boost from 1 megabyte to 2 megabytes enabled customers with enhanced transaction speeds per second.
While this platform is still available today, alternative solutions that have subsequently emerged in the business are likely what have caused lower interest and thus blocked future development on this platform entirely.
Bitcoin Unlimited: In early 2016, a hard fork protocol called Bitcoin Unlimited was launched. It lets users choose their block size as long as it does not exceed 16 megabytes.
Although cautious about its launch and originally uncertain about its goal, this new platform showed promise in the Bitcoin industry; nonetheless, Bitcoin Unlimited’s potential appears to have been unfulfilled due to a lack of general user adoption.
Bitcoin Cash: Since its inception in August 2017, Bitcoin Cash has been a successful fork of the original Bitcoin network. It has become one of the most valuable cryptocurrencies in the world, with BCH ranking 29th in market capitalization as of May 2023.
According to Roger Ver, BCH might overtake Bitcoin as the world’s leading cryptocurrency.
Bitcoin SV: Bitcoin Vision was established as a hard fork of Bitcoin Cash in November 2018, resulting in two forks: 32 and 128 megabytes. Bitcoin SV rose to the 60th biggest cryptocurrency by market capitalization in April 2022.
Further increases are still feasible, but low volumes have hindered significant growth.
Bitcoin forks have existed since 2019, including Bitcoin Diamond, Bitcore, Bitcoin God, and SuperBitcoin. In 2018, Sichuan University in China released ‘Bitcoin Post Quantum,’ a post-quantum cryptography-inspired alternative.
Members of strong crypto communities must be updated on anticipated splits to capitalize on them and raise awareness. Therefore, investors should be cautious of potential scams or ineffective coins.