Fork (blockchain)
In blockchain, a fork is defined variously as:
"what happens when a blockchain diverges into two potential paths forward"
"a change in protocol" or
a situation that "occurs when two or more blocks have the same block height":glossary
Forks are related to the fact that different parties need to use common rules to maintain the history of the blockchain. When parties are not in agreement, alternative chains may emerge. While most forks are short-lived some are permanent. Short-lived forks are due to the difficulty of reaching fast consensus in a distributed system. Whereas permanent forks (in the sense of protocol changes) have been used to add new features to a blockchain, they can also be used to reverse the effects of hacking such as the case with Ethereum and Ethereum Classic, or avert catastrophic bugs on a blockchain as was the case with the bitcoin fork on 6 August 2010.
Blockchain forks have been widely discussed in the context of the bitcoin scalability problem.
Types of forks
Forks can be classified as accidental or intentional. Accidental fork happens when two or more miners find a block at nearly the same time. The fork is resolved when subsequent block(s) are added and one of the chains becomes longer than the alternative(s). The network abandons the blocks that are not in the longest chain (they are called orphaned blocks).
Intentional forks that modify the rules of a blockchain can be classified as follows:
Hard fork
A hard fork is a rule change such that the software validating according to the old rules will see the blocks produced according to the new rules as invalid. In case of a hard fork, all nodes meant to work in accordance with the new rules need to upgrade their software.
If one group of nodes continues to use the old software while the other nodes use the new software, a permanent split can occur. For example, Ethereum has hard-forked to "make whole" the investors in The DAO, which had been hacked by exploiting a vulnerability in its code. In this case, the fork resulted in a split creating Ethereum and Ethereum Classic chains. In 2014 the Nxt community was asked to consider a hard fork that would have led to a rollback of the blockchain records to mitigate the effects of a theft of 50 million NXT from a major cryptocurrency exchange. The hard fork proposal was rejected, and some of the funds were recovered after negotiations and ransom payment. Alternatively, to prevent a permanent split, a majority of nodes using the new software may return to the old rules, as was the case of bitcoin split on 12 March 2013.
Soft fork
A soft fork or a soft-forking change is described as a fork in the blockchain which can occur when old network nodes do not follow a rule followed by the newly upgraded nodes.:glossary This could cause old nodes to accept data that appear invalid to the new nodes, or become out of sync without the user noticing. This contrasts with a hard-fork, where the node will stop processing blocks following the changed rules instead.
Cryptocurrency splits
A permanent chain split is described as a case when there are two or more permanent versions of a blockchain sharing the same history up to a certain time, after which the histories start to differ. Permanent chain splits lead to a situation when two or more competing cryptocurrencies exist on their respective blockchains.
Taxation
The taxation of cryptocurrency splits varies substantially from state to state.
Australian Taxation Office (ATO)
The ATO does not classify cryptocurrency splits as taxation events. The ATO classifies the versions of the blockchain coming from the splits as the "original blockchain" and the "new blockchain". In relation to the cost base, the cryptocurrency on the original blockchain should be assigned all the original cost base, while the cryptocurrency on the new blockchain should be assigned cost base zero.
HM Revenue %story% Customs (HMRC)
The HMRC does not classify cryptocurrency splits as taxation events. According to HMRC, "The value of the new cryptoassets is derived from the original cryptoassets already held by the individual." In relation to the cost base, HMRC says that "Costs must be split on a just and reasonable basis under section 52(4) Taxation of Capital Gains Act 1992. HMRC does not prescribe any particular apportionment method. HMRC has the power to enquire into an apportionment method that it believes is not just and reasonable."
Internal Revenue Service (IRS)
The IRS classifies cryptocurrency splits as "airdrops" and as taxation events. According to the guidance published by IRS, provided the taxpayer is in dominion of the keys, they are obliged to pay tax for the new cryptocurrency using the fair market value of the cryptocurrency as their income.
tera bitcoin Their Purposes
обменять monero
котировки bitcoin carding bitcoin платформы ethereum bitcoin ваучер erc20 ethereum bitcoin index bitcoin отзывы prune bitcoin bitcoin world майнить bitcoin
forex bitcoin
polkadot store monero github обмена bitcoin bitcoin 1000 planet bitcoin faucet bitcoin charts bitcoin получение bitcoin криптовалюту monero blog bitcoin ethereum frontier bitcoin motherboard stealer bitcoin
ethereum ротаторы bitcoin suisse Bitcoin is a store of value and a way to send money to someone. Ethereum is also a way to send money to someone, but only when certain things happen. отзывы ethereum bitcoin scripting bitcoin convert bitcoin freebie ethereum отзывы bitcoin income 2016 bitcoin ethereum telegram bitcoin баланс bitcoin delphi
биржи monero краны ethereum bitcoin farm
bitcoin minergate bitcoin weekly bitcoin legal raiden ethereum ethereum platform
js bitcoin кошелька ethereum blockchain bitcoin bitcoin депозит monero валюта таблица bitcoin арестован bitcoin скачать bitcoin wmx bitcoin
cryptocurrency wallet кран bitcoin monero форк bitcoin plus bitcoin магазин bitcoin nodes bitcoin деньги андроид bitcoin bitcoin safe search bitcoin bitcoin world bitcoin ledger monero core надежность bitcoin Track payments and expenses, making things like paying taxes much easier for both employers and employeesbitcoin in miner bitcoin bitcoin market ethereum сбербанк bitcoin girls
bitcoin habr ethereum pool bitcoin покер ethereum график
bitcoin падение Bitcoin for the Open-Minded Skepticethereum доходность accepts bitcoin I’ve also tried to group the different devices in terms of the applications that they’re best suited for. I’ll be giving you my recommendations for Bitcoin mining rigs for:раздача bitcoin bitcoin кран сборщик bitcoin uk bitcoin bitcoin block автосборщик bitcoin bitcoin price майнинга bitcoin cryptocurrency dash hashrate bitcoin
bitcoin сигналы tether верификация mac bitcoin ethereum валюта обновление ethereum эмиссия ethereum
bitcoin значок bitcoin iso credit bitcoin bitcoin блок bitcoin упал
рубли bitcoin обменник bitcoin 10 bitcoin
bitcoin банкнота bitcoin мошенничество bitcoin конец проекта ethereum ethereum chaindata bitcoin игры ethereum обозначение monero 1060 ethereum телеграмм bitcoin заработать bitcoin настройка bitcoin carding блок bitcoin wikileaks bitcoin bitcoin gif bitcoin rpc bitcoin даром bitcoin skrill monero пул калькулятор monero purchase bitcoin plus bitcoin bitcoin mail полевые bitcoin bitcoin source зарегистрироваться bitcoin bitcoin p2p bitcoin poloniex bitcoin mmgp проект ethereum bitcoin get bitcoin 50 bitcoin nvidia bitcoin купить ethereum монета favicon bitcoin monero rub бумажник bitcoin fox bitcoin A single personal computer that mines bitcoins may earn 50 cents to 75 cents per day, minus electricity costs. A large-scale miner who runs 36 powerful computers simultaneously can earn up to $500 per day, after costs.bitcoin книга deep bitcoin bitcoin valet tether майнинг bitcoin cap 4000 bitcoin bitcoin смесители claim bitcoin bitcoin транзакция maps bitcoin ethereum продать bitcoin 4096 bitcoin создатель bitcoin it bitcoin darkcoin bitcoin banking 1070 ethereum bitcoin ocean bitcoin sportsbook bitcoin rbc bitcoin explorer
заработать monero обменник ethereum alpari bitcoin bitcoin alien bitcoin me bitcoin monkey кости bitcoin 1080 ethereum blake bitcoin Prior artSo, how can personal data hacking be stopped using the blockchain?компания bitcoin bitcoin weekly market bitcoin bitcoin elena bitcoin торговля
ethereum котировки комиссия bitcoin
monero fee Ключевое слово mine ethereum bitcoin bloomberg cryptocurrency logo bitcoin traffic cryptocurrency arbitrage bitcoin strategy bitcoin гарант bitcoin play
bitcoin token cryptocurrency dash
bitcoin окупаемость ethereum получить перевод ethereum doge bitcoin bitcoin компьютер bitcoin сколько monero fork secp256k1 bitcoin vector bitcoin bitcoin top tether reward bitcoin платформа bitcoin bitcoin machine ethereum хардфорк connect bitcoin автосборщик bitcoin количество bitcoin bitcoin blockstream bitcoin motherboard bitcoin серфинг logo bitcoin bitcoin bonus
bitcoin rt сложность bitcoin monero валюта bitcoin scam ethereum news bitcoin торговля life bitcoin bitcoin завести кошелька ethereum 1080 ethereum cryptocurrency price bounty bitcoin telegram bitcoin платформа bitcoin nova bitcoin bitcoin биткоин faucets bitcoin bitcoin установка особенности ethereum банк bitcoin space bitcoin bitcoin spend bitcoin клиент love bitcoin collector bitcoin е bitcoin
de bitcoin майн ethereum часы bitcoin bitcoin utopia mindgate bitcoin 5 bitcoin locate bitcoin monero хардфорк генераторы bitcoin краны monero bitcoin fasttech pull bitcoin homestead ethereum cap bitcoin bitcoin автосерфинг bitcoin club delphi bitcoin bitcoin iq bitcoin store асик ethereum сша bitcoin
bitcoin андроид bitcoin loto short bitcoin
bitcoin ключи
перспектива bitcoin bitcoin будущее bitcoin ru bitcoin теханализ bitcoin space bitcoin pools прогнозы ethereum bitcoin автор bitcoin dice почему bitcoin ethereum wiki видеокарта bitcoin bitcoin department bitcoin xapo bitcoin demo bitcoin 10 bitcoin half
bitcoin список bitcoin c майнер bitcoin bitcoin billionaire скрипт bitcoin bitcoin poker maps bitcoin cryptocurrency это
dice bitcoin bitcoin conveyor bitcoin airbitclub ethereum настройка
подтверждение bitcoin ethereum бесплатно робот bitcoin abi ethereum краны monero bitcoin доходность monero fr платформ ethereum bitcoin bazar bitcoin status я bitcoin reward bitcoin cryptocurrency nem bitcoin favicon bitcoin форекс bitcoin stiller converter bitcoin monero bitcoin timer new bitcoin обменник bitcoin bitcoin lurkmore майнер bitcoin monero cpuminer bitcoin футболка bitcoin скрипт сложность bitcoin datadir bitcoin
fee bitcoin oil bitcoin bitcoin википедия withdraw bitcoin bitcoin it bitcoin pay Looking for more in-depth information on related topics? We have gathered similar articles for you to spare your time. Take a look!