Financial bifurcation of blockchain

2. Forking is different from ordinary upgrading. Ordinary upgrading does not affect agreement consensus before and after upgrading, and generally does not need the participation of community consensus or computing consensus. According to the modification of the protocol, bifurcation can be divided into soft bifurcation and hard bifurcation

existing definition:

[lightning definition] hard fork refers to that when the bitcoin block format or transaction format (this is the widely spread "consensus" (should be part of the agreement consensus)) changes, the UN upgraded node refuses to verify the blocks proced by the upgraded node, but the upgraded node can verify the blocks proced by the UN upgraded node, Then we continue the chain that we think is right, so we divide it into two chains< A permanent divergence in the block chain, commonly occurs when non upgraded nodes can't validate blocks created by upgraded nodes that follow new consensus rules, The UN upgraded node can verify the blocks proced by the upgraded node, and the upgraded node can also verify the blocks proced by the UN upgraded node<

a temporary fork in the block chain which commonly occurs when miners using non upgraded nodes vialate a new consensus rule their nodes don't know about.

I don't think we can say which definition is right or wrong. The specific definition can be summed up according to the differences between the two that have been widely agreed in the community, and it doesn't need authority to specify

hard fork: without forward compatibility, the previous version will be unusable and need to be upgraded

soft fork: it has good compatibility, at least some functions of previous versions are available, and can not be upgraded

hard branching: at the level of blockchain, there will be two branching chains, one old chain and one new chain

soft bifurcation: there are no forked chains at the level of blockchain, but only the blocks that make up the chain, including new blocks and old blocks

hard forking: it is necessary to agree with the forking upgrade at a certain time point, and those who do not agree will enter the old chain

soft bifurcation: for quite a long time, it is allowed to continue to use the original version to generate old blocks and coexist with new blocks without upgrading

3.

In September 2017, the central bank and other seven departments jointly issued the "notice on preventing the financing risk of token issuance", which defined ICO (initial coin offerings) as unauthorized and illegal public financing, suspected of illegal selling token bills, illegal issuing securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal criminal activities

in 2017, ICO became very popular relying on the concepts of "digital currency", "blockchain" and "smart contract". However, only by publishing a "white paper" through a few people's team, and even some can start financing activities without a white paper, this operation mode has laid great risks for investors, and the outside world has always disputed the legitimacy of ICO. In September last year, the central bank and other seven departments gave a clear definition of ICO and stopped all kinds of token financing activities. Seven departments said in the announcement that token issuance financing is essentially an illegal public financing behavior without approval, and is suspected of illegal sale of token tickets, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities

However, after the ban of ICO, a new way of playing the coin circle, IFO, has sprung up. The so-called IFO refers to the branching currency issuance based on mainstream currencies such as bitcoin and Ethereum. On the basis of the original blockchain of these mainstream currencies, another chain is split according to different rules to generate new digital currency. People who hold mainstream currencies can get new currency after bifurcating in the process of IFO, and IFO has become a new means of virtual currency financing

on August 1, 2017, the birth of BCH marked the first generation of bifurcated coin in the coin circle. The size of bitcoin block is only 1m, and the smaller the block is, the smaller the capacity is, the slower the bitcoin transaction will be. In order to solve the problem of bitcoin block congestion, BCH blockchain successfully separated from the main chain in block 478559, resulting in a new cryptocurrency. The default block size is 8m, which can also realize the dynamic adjustment of block capacity. At the same time, people who used to hold bitcoin can get BCH for free at a ratio of 1:1

since its birth, there have been different opinions about whether BCH is a new branch of bitcoin or another kind of "counterfeit currency". However, after several ups and downs, the price of BCH began to develop steadily. As of 20:30 p.m. on February 26, the price of BCH reached 8058.8cny, and that of BTC was 67558.69cny, according to the data of fire coin

following the success of BCH bifurcation, more and more new virtual currencies have been proced through IFO, such as BTG (bitcoin gold), BCD (bitcoin diamond), SBTC (super bitcoin), etc. Chen Yunfeng believes that according to the explanation of the technical level, part of the forked currency is the upgrading or improvement of the original technology. If it is a forked currency in this sense, it is difficult to say that it has no value. Moreover, when the regulatory level repeatedly prompts the investment risk of virtual currency, the investment value should be judged by the investors themselves

Shi Qingwei, the founder of sharing finance, said that IFO is a new way to play in the past two months, and most projects generated by IFO have no investment value. Some IFO issuers believe that they are not raising funds through ICO, but a fork of mainstream currencies such as bitcoin and Ethereum, which have a large number of users. After users get the forked coins, they usually ask to join the transaction, and then the issuer of IFO will get a huge profit because of the number of forked coins g in advance. He further said that most of the bifurcated currencies proced by IFOS have no investment value and even higher investment risk than ICOS

"pre dig" fork currency or there is a risk of fraud

so, how does IFO make money According to the daily economic news, miners develop bifurcated coins in bitcoin blocks through technical means, and then distribute the developed bifurcated coins to bitcoin holders in proportion, and gain value in the transaction and circulation. Some of them will also be traded and circulated through the digital asset exchange. It is worth noting that most of the forked coins will be "pre g" before they are officially released. The pre g forked coins are equivalent to those obtained free of charge, so the founders of the forked coins can easily make profits. In the market, some people think that IFO in the name of "pre digging" is actually a more naked game of token issuance

on November 15, 2017, the domestic well-known super bitcoin team announced that it will implement the bifurcation at the 498888 height of bitcoin blockchain on December 17, and start the technical test of zero knowledge proof and intelligent contract supporting Turing complete, and expand its block to 8MB. It will also launch the intelligent contract in early March 2018 to increase the scalability of BTC Zero knowledge proof will be launched by the end of May 2018, and dynamic checkpoints will be removed by the end of November 2018 to realize fully decentralized mining. If the split is successful, a new split coin, SBTC, will be proced. The original bitcoin holders will give it away one by one, with a total amount of 21.21 million. Among them, 210 thousand are pre g by the split team foundation, which is mainly used to encourage early developers to invest in ecological construction and foundation operation

Song Qinghui, a famous economist, said that e to the lack of regulatory policies and the extremely low threshold of user participation, IFO itself may be suspected of illegal sale of token bills, illegal issuance of securities, illegal fund-raising and financial fraud. Many new virtual currencies born through IFO have little value, and there may be fraud and fraud, Investors need to pay enough attention

According to Shi Qingwei's analysis, on the one hand, IFO will cause great division in the community; On the other hand, the people who issue IFO are basically some investors, and few of them really do the Ifo project in a down-to-earth way. Because they do not have strong executive power and values, it is difficult to do the Ifo project. To put it bluntly, some IFO projects are short of money, and they will not do it after cash out, and there is no particularly big risk. Just intensify market acquisition and cut leeks. The most typical risk is fraud risk, and the other is the risk of market operation. Some investors have been trapped in the Ifo project

according to Zhang Yexia, senior researcher of Yingcan consulting, first of all, there is no clear definition of IFO financing activities in China's law, and there is a risk of being prohibited; The second is fraud risk. With the rise of the concept of IFO, it is easy to attract criminals to use concepts such as "mainstream currency bifurcation" and "blockchain technology" to attract investors, but in fact there is no so-called token issuance and technology research; The third is the technical risk. At present, the technologies and standards of mainstream currencies, such as bitcoin and Ethereum, are different. There is no same technical standard, and the technical level is also different. Therefore, the hidden dangers of technical security can not be ignored

Chen Yunfeng believes that for the financing behavior in the name of IFO, the investors can only obtain the value-added income through the digital currency trading market without the actual application scenario of the bifurcated currency itself. This form of financing activity has not been clearly defined in law and needs to be regulated by the relevant departments

Hong shuning, chief researcher of the blockchain Laboratory of Suning Financial Research Institute, believes that the risks of IFO are manifested in the following aspects: first, there may be serious loopholes in changing the agreement without careful consideration; Second, the software released in a hurry will inevitably have a lot of bugs; Third, every IFO will divert some miners, causing fluctuations in the trading smoothness of bitcoin; Fourth, e to the low acceptance of bifurcated currency, the price fluctuation may far exceed that of bitcoin, which is unfavorable to investors

At the same time, Hong shuning said that in the real sense, IFO should not pre dig because it goes against the original intention of bitcoin development, fairness and freedom. In fact, like ICO, IFO is a disguised means of financing. Teams that need to make profits in advance should issue their own digital currency, not under the banner of IFO

is illegal

4. After the release of the new consensus rules, some nodes that have not been upgraded cannot verify the blocks proced by the upgraded nodes, and usually hard bifurcation occurs.

5. Hard bifurcation is caused by the unacceptable permanent divergence of blockchain, while soft bifurcation is caused by the acceptable divergence of blockchain. The emergence of hard bifurcations means the emergence of a blockchain that cannot accept the new consensus mechanism. This blockchain is equivalent to the old version of the system, while the new version accepts the new consensus mechanism. Although the two versions are not different, they are still interrelated. The block nodes caused by soft bifurcation are compatible with the new consensus mechanism, and will not form another block chain. Hard and soft bifurcations are common in coin circles. In addition to currency speculation, blockchain can be applied in many places, including medical care, insurance, ecation, food, etc. I know a company specializing in blockchain development, Xuanling technology. Their evaluation in the instry is not bad.

6.

Fried coins or something

at present, the application of blockchain technology is virtual currency. Therefore, virtual currency is also known as the first real birth proct of blockchain. The popularity of virtual currency is also obvious to all, which has set off a frenzy of investment in many countries. According to foreign media reports, the number of virtual currency transactions in the United States has reached 5 million; South Korea is estimated to be the craziest nation in the world, with one in every 50 people speculating, and 31% of the working class buying and selling virtual currency; Venezuela has also issued the world's first virtual currency with the nature of national sovereignty - oil currency

with the popularity of virtual currency, market investors are not only satisfied with the conventional trading mode of buying low and selling high, but also actively seek more simple and convenient trading ways to obtain more profits. The virtual currency trend trading method was born and successfully captured the hearts of investors in a short time, becoming a major mainstream trading mode

according to

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, the trend trading method of virtual currency is exclusively launched by speedxo, an international financial service provider with deep experience. It mainly deals with the currency pair composed of virtual currency and real currency, and it can make profits as long as it is bullish or bearish. For example, if an investor trades in "bitcoin / US dollar", he or she only needs to judge whether the price will rise or fall after 30 seconds, and buy up or down according to the trend. If he or she buys in the right direction after 30 seconds, he or she can get 93% of the net income of the investment amount. It is this kind of rise and fall are profitable, time-consuming, no need to take advantage of the market, the trend trading method quickly swept the entire currency circle

7. What is blockchain bifurcation? Will bifurcation cause my bitcoin to split in two
it's very easy to upgrade the software in the centralized system. Click "upgrade" in the app store. However, in decentralized systems such as blockchain, "upgrade" is not so simple, and may even result in the bifurcation of blockchain
in short, bifurcation refers to the divergence of opinions ring the "upgrade" of the blockchain, which leads to the bifurcation of the blockchain. Because there is no centralized organization, every code upgrade of digital assets such as bitcoin needs to be approved by the bitcoin community. If the bitcoin community fails to reach an agreement, the blockchain is likely to form a fork
taking bitcoin as an example, in July 2017, in order to solve the congestion problem of bitcoin blockchain, some bitcoin enthusiasts proposed bitcoin cash bifurcation scheme, resulting in bitcoin blockchain split in two
according to whether the forked blockchain is compatible with the old blockchain, the forking can be divided into "hard forking" and "soft forking".

8. Bifurcation is to create an ongoing blockchain replacement version by creating two blocks simultaneously in different parts of the network. This creates two parallel blockchains, one of which is the winning blockchain.

9. Yes, after the bifurcation, it will be an independent branch, and then it will start again and again, and it will continue like this

10. Hard bifurcation is defined as permanent divergence in the blockchain. After the release of the new consensus rules, some nodes that have not been upgraded cannot verify the blocks proced by the upgraded nodes, and usually hard bifurcation occurs
it doesn't matter whether blockchain hard branching is good or bad. It depends on how to treat it. Blockchain itself is just a technology that anyone can use. This technology is not mature at present, and there are not many mature projects. Yuanying China is just trying a new mode of blockchain crowdfunding.