Crypto Industry — should we expect another Attack of Bitcoin Clones?

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Let’s talk about the phenomenon of Bitcoin clones in crypto industry. First, In order to understand the essence of what is happening in the crypto industry, we must understand the terminology. Bitcoin is increasingly using the definition of “digital currency”. That is, it is worth mentioning that this is the first fully open decentralized digital currency. Its main feature is the use of blockchain technology.

The main difference between Bitcoin and other digital currencies and payment services like WebMoney, Yandex.demoney and even PayPal is the complete decentralization and openness of the source code. First, everyone can disclose and see completely all the technical secrets of Bitcoin. On the opposite side, its centralized competitors can not boast the same. Secondly, you make a change to the Bitcoin code and get your own new cryptocurrency. This is called fork of Bitcoin. As a result, new cryptocurrencies appear. They use Bitcoin’s software parts as a basis.

In the crypto community, there is no consensus as to what Bitcoin should be in the crypto industry. Therefore, some groups of people with similar interests unite to create the best, in their opinion, version of Bitcoin.

Crypto industry: What is Blockchain?

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The blockchain is the technological basis of bitcoin. To understand what it is, imagine an accountant who writes each transaction to the accounting book. This book is single, but multiple. Essentially, everyone can make entries in his book. Then, they synchronize results with other accountants according to certain rules.

Thus, the book is the same for all, but each has its own copy. This is the blockchain in a simplified form. Each sheet in this book is a block. The sheet in the book is a block in the blockchain.

To turn the sheet, you need to fill in and count it unique identifier first, then send it to other accountants for synchronization. The very first record stores the Archives, this is public information. Since the sheet has a limited scale, the number of entries on the sheet is also limited.

Example: Bitcoin Cash — What is it?

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Bitcoin Cash is the first bit of the same named fork of Bitcoin, which got at least some recognition and distribution. A block or sheet (as in the upper example) has its own markup. Those who did not like this markup offered to increase the size of the book 8 times. That way, the sheets could contain more information.

The developers took Archive as the basis. It records everything that happened before in the accounting department. At some point, they started to keep their records in their enlarged books. This is how hard fork of bitcoin came to life in crypto industry. Therefore, Bitcoin Cash (BCH) appeared.

Approximately so, it is possible to imagine the division of one Bitcoin into two. This term is commonly called “Bitcoin fork”.

Previously, users in the new and old chain of blocks had the same number of Bitcoins. Now they are in different detachments and have different views. In a larger scale, this is the result of the lobbying of one’s own interests of one of the dissatisfied groups, which at a certain time created its own chain of blocks.

More details

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As it may seem from the title – Bitcoin Cash is cash of Bitcoin. But no! Bitcoin has nothing to do with cash at all. Its main idea is that it has no physical representation. Neither coins, nor banknotes, nor any papers can be Bitcoin. By itself, the cryptocurrency exists only in the Internet space and does not go beyond it.

To get an agreement in any crypto community is very difficult. Therefore, a new group of people in the crypto industry began to develop plans to increase the updated book of the original Bitcoin 2 times. This planned update goes by name SegWit2x.

This is not the end of the story. Seeing the success of Bitcoin Cash, other groups of the crypto industry began to develop another Bitcoin fork codenamed Bitcoin Gold. It seems it became fashionable to create your own cryptocurrency under the shadow of the Bitcoin brand.

The irrepressible ambitions of certain groups of crypto community translate into the fact that we expect at least two forks in the Bitcoin network coming in the near future.

What’s the result?

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Actually, all forks have nothing to do with the original Bitcoin. In fact, these are separate cryptocurrencies with similar names. Their founders have a certain benefit from forks. Cryptocurrencies that formed as a result of forks receive the entire user base of the original bitcoin network. They receive part of the mining capacities as well as the shadow of the original Bitcoin brand.

Personally, these forks seem to be fraudulent schemes. They try to earn and gain control over a certain part of users under the ideology of improving Bitcoin.

In any case, the original Bitcoin showed great resistance to this kind of attacks. Further forks of Bitcoin are unlikely to become any significant. In a positive light, the community and crypto industry received new experience and increased its technical literacy.

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