Cryptocurrencies are a new type of asset that operates on an open-source blockchain. The blockchain is a public record that keeps track of all transactions made on the crypto’s network. Cryptocurrencies like Bitcoin are designed to be decentralized and don’t have a central authority. Because of this, it is possible for developers and the community to create new currencies that operate on a different version of the blockchain. This process is called a fork. When a fork occurs, the cryptocurrency’s blockchain splits into two distinct versions. Each version has its own set of rules. When this happens, the coins from the old blockchain become part of the new one. In some cases, forks occur when the community or developers want to make significant changes to a cryptocurrency. For example, developers could decide to increase the block size on the Bitcoin blockchain to reduce transaction fees. The new Bitcoin would be a fork of the original, and the forked coin would have its own history and value.

Forks generally occur when there is disagreement among miners or developers about a platform’s protocol and growth. This can happen with any established cryptocurrency and has led to the creation of several different forks of Bitcoin. For example, Bitcoin Cash was created because some developers wanted to avoid a proposed update to the Bitcoin blockchain known as SegWit that would have increased transaction fees. Bitcoin Cash eventually became the seventh-largest cryptocurrency after gaining popularity and support in the blockchain community.

How do you claim forked coins?
If you are on a cryptocurrency exchange or a managed wallet that supports the fork, you will usually be able to access your new coins immediately after a fork. Forks that don’t have significant community support typically experience a period of instability where the price of the forked coin goes up and down dramatically. It is important to be cautious during this time and not fall prey to scams and malware.

There are also forks of popular cryptocurrencies that don’t clone an existing blockchain but pick up where it left off, such as Bitcoin Gold (BTG) and Bitcoin Diamond (BDV). These forks are often referred to as altcoins, or alternative coins. These forks may be more stable but don’t have the same liquidity as their more established counterparts.

While many forks are created to add stability to a currency, others are developed simply because they have different features that attract a more niche market. For example, a crypto that adds privacy features might gain more adoption than its rival. It is important to keep an eye out for these altcoins, as they may have a bright future ahead of them. If you are looking to invest in a cryptocurrency, be sure to research all of the available options, including forks. With careful research, you can make the best decision about which cryptocurrency to invest in. Good luck!