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Why do digital currencies fork? (Why do digital currencies rise and fall together?)

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Why do digital currencies fork? Why do digital currencies fork? In order to avoi

Why do digital currencies fork? (Why do digital currencies rise and fall together?)

Why do digital currencies fork? Why do digital currencies fork? In order to avoid the duplication of currency use, there is often a discussion in the Bitcoin community about whether a hard fork will occur.

However, from a historical perspective, both Bitcoin and Ethereum are relatively mature technologies in terms of network security. Therefore, for Bitcoin, due to different consensus mechanisms, code structures, and other reasons, multiple forked versions have appeared. Such divergences can lead to conflicts among users; if the developers of a project do not agree with the rules of the split protocol and abandon the project’s development direction (such as the BCH branch), while another project may exit the market due to a lack of consensus.

So what exactly is a fork?

We all know that blockchain is a decentralized database system. The information on the blockchain is controlled or owned by a participating party, and this node verifies the information before it is managed by the organization. This approach can make the operation of the entire ecosystem more stable and reliable; it can also ensure that the data is not tampered with or deleted. In addition, there are some functions similar to transactions between exchanges, such as allowing the two parties to trust each other directly; transfer assets to the designated wallet without authorization when transferring funds through third-party payments, and so on. This may cause hacker attacks. Therefore, in the field of blockchain, when it comes to digital currencies, this problem needs to be solved. (Bibi News)

Why do digital currencies rise and fall together?

In recent times, the rise and fall of digital currencies have overlapped, which is related to the previous rise of Bitcoin. Why? Because in the previous market, when Bitcoin rose from $8,000 to around $9,000, other currencies also rose sharply and then fell back; while Ethereum and Litecoin respectively fell by 15% and 18%, and EOS even fell by about 30%.

If it is said that after the bull market ended in 2017, everyone will think that digital assets have passed the trend, and now they are at a turning point: BTC (or LTC) broke through the $10,000 mark and then rebounded. But at the same time, the market has fallen into a frenzy. Why do digital currencies rise and fall together with the rise this year? The reason is that digital RMB does not use bank accounts and payment systems for cross-border remittances and other services, so the price fluctuates too fast. However, with the gradual introduction of digital RMB by the central bank and the continuous enrichment of application scenarios, the trend in the coming period will be more complicated and unpredictable. So what is the reason for the rise and fall of digital RMB? Let’s take a look.

1. Chairman of the China Banking Association: Our country has an open attitude towards the blockchain industry and encourages companies to participate in blockchain technology research and development

2. Bithumb, the largest internet company in South Korea, plans to issue virtual asset tokens

3. The Finance Minister of India stated that the regulatory framework for digital currencies will be officially announced in May

4. US SEC Commissioner: Digital securities trading is a commodity

5. Japanese exchange Coincheck has stopped providing related products and services

6. The Financial Supervisory Commission of South Korea has required all companies under its jurisdiction to submit registration statements

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