What is a Bitcoin fork?


There has been significant news coverage and developments in recent weeks roughly changes to digital currency networks. These are sometimes called forks. We wanted to present a bordering to, non-obscure version to whole context to recent discussions (previous blog posts here and here).

What is a “fork”?


A fork is a adjust to the software of the digital currency that creates two sever versions of the blockchain as soon as a shared records.
Forks can be performing, lasting for a few minutes, or can be a surviving split in the network creating two separate versions of the blockchain. When this happens, two interchange digital currencies are moreover created.

Why are changes made to digital currency protocols like Bitcoin and Ethereum?


Coinbase currently supports 3 digital currenciesBitcoin, Ethereum and Litecoin. Each of these digital currencies use right of access-source software protocols following independent improve teams responsible for changes and improvements to the network, much in the same habit that changes to internet protocols let web browsing to become bigger beyond epoch.
Our mission is to make an right of right of entry financial system for the world and we acquiesce digital currencies will be fundamental in achieving this mission. However, many of these digital currencies are still in to the front progression. Making improvements to the softwaresuch as the number of transactions the network can lookis crucial to creating finance 2.0.

Why do forks happen?


There are a few reasons why a fork can happen. For example, taking into account a alter is proposed to a digital currency protocol, users compulsion to show a role their call off for the adding together financial credit and remodelin a same pretentiousness to people regularly update applications vis--vis their computer. In order for these changes to acquire certified many people compulsion to comply, just as changes to cellphone networks require many phone companies to yield.

What does this mean if I have digital currency stored on Coinbase?


Coinbase actively monitors protocol developments and works hard to ensure customer funds are safe in these events. Our policy is to go without by yourself one financial version of a digital currency. In order to determine which fork to maintain we see at factors such as size of the network, pronounce value and customer demand. We make this decision carefully because safely supporting a toting occurring digital currency requires significant doing for many teams.