Another term used to describe Fork.

chain split


A chain split is a break in digital recordings, known as blockchain, created by computers that run cryptocurrency-based technology. 

With cryptocurrencies, only one recording (blockchain) can be made at a time. 

However, if the network of users managing cryptocurrency technology disagree on how the blocks should be made, they may split off, leading to each one of them forming their own chain of recordings. 

This had first happened with Ethereum back in 2016, resulting in Ethereum and Ethereum Classic.

Importance of Chain Split 

The Bitcoin split (chain split) – which as of today appears to have become smooth with effortless transitions into two parallel blockchains (further leading to the making of two virtual currencies) – is the first public proof-of-concept of the consensus-driven nature of blockchain technology.

This is likely to give a confidence boost to the growing number of applications currently being developed using this particular platform – IBM, for example forecasts that by 2020, 2/3rds of banking organizations will definitely be using blockchain-based apps.

Forecasters also believe that this technology will form the backbone of various machine-to-machine communications and commerce as the Internet of Things continues to grow and evolve with time.

Since its inception many have predicted that Bitcoin would be nothing more than a flash-in-the-pan – after all, something as monumental as disrupting the fiat-based, global system of currencies and commerce was always likely to produce excessive scepticism. 

But however, it’s continuous evolution and growth demonstrates that the underlying principle of blockchain is only now beginning to show its full potential and will advance with time in the near future.

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