What is the reason for bifurcation risk (what is a bifurcation point)

What is the reason for bifurcation risk? The most famous bifurcation coin in the blockchain field is caused by BCH hard bifurcation, but there are many reasons behind it, and the largest one is BCHN. This split has led to problems in the Bitcoin network in a short period of time, making it impossible for users to make payments or upgrade operations. Therefore, it is necessary to take responsibility for this event So what is bifurcation risk? It mainly includes: firstly, miners are unwilling to bear the losses of failed transactions because they can switch to new chains at any time; 2、 The mining pool did not adjust the block rewards in a timely manner; 3、 The loss or theft of mining machines allows attackers to use malicious software to disrupt the network

If the mining authority stops, differences may occur, and even cause the collapse of the entire Cryptocurrency market. What consequences will forking bring to people? Firstly, when you dig out a new coin, two types of tokens will be generated, namely BTC and ETH. But these tokens are not always redeemed 1:1. So, in order to prevent disagreements, it is necessary to merge the two tokens and sell them on the exchange (rather than selling them together), which increases the user’s loss space. When you buy new coins, a similar situation will occur, which makes it difficult for miners to buy and destroy their assets from the Secondary market

What is a bifurcation point

Editor’s note: This article is based on the data and is reprinted by the Daily Planet Daily with authorization In recent months, there have been more and more bifurcations in Bitcoin A block was excavated in the past day and then reappeared again. The reason for this split is that “a new blockchain protocol has emerged on the Ethereum network”, which makes it a potential problem, because people are full of expectations for the future of BTC and counterfeit coins This situation has been going on for many years, but it wasn’t until last year that it improved – from the initial difficulty of mining to the current 50000 transactions processed per second, and even worse, there were two hard forks. The biggest reason for this disagreement is the number of blocks that have been split So what is a ‘bifurcation point’? Why is there a fork? Bifurcation point is a new mechanism based on consensus algorithm that can implement a new, decentralized digital currency architecture. Its characteristic is the process of synchronous updates at any given offline time, which means that users can convert existing assets back into new tokens without changing the old chain The so-called “bifurcation point” refers to the generation of a new digital currency after a certain block or event occurs, and it is modified according to specific rules. If two addresses hold the same code at the same time, this account will automatically receive a new currency as a reward. When an address has two other parallel public keys on the same block, the account can continue to recharge to another address; On the contrary, if only one address owns the same public key and fails to recover the previously received balance according to the rules, the account will lose its full value. Therefore, the “fork point” is also called a replay protection scheme. The “fork point” refers to some nodes that no longer need to perform any operations to complete the change of contract functions after software upgrades, but can use existing functions to achieve the goal of improving efficiency. For example, EOS developers are testing a proposal aimed at making the EOS network more secure, rather than relying on a single client to run their own version But for most people, they won’t be involved. So some people may think that these improvements do not necessarily mean that all nodes will agree to their proposals or require them to make decisions. However, a few community members also expressed support for such suggestions, pointing out that “the bifurcation point only solves some small problems”.