Bitcoin has fundamentally changed how financial transactions are conducted around the world. Giving the power of controlling their money back to the users, it allows faster, secure, cheaper and intermediary free transactions all over the world. Yet, over the years, there have been a lot of debates and disagreements on the underlying workings of the biggest cryptocurrency. The latest split, or hard fork has been announced by Z-Magnetars, a tech company, that is designed to cater for the drawbacks in Bitcoin and exploit its true power.
But Why a Hard Fork?
A cryptocurrency developed today may seem to be the best thing that can happen to the financial world. However, a few years down the road, there might be issues that the developers could not fathom. A debate is a usual outcome when it is discussed by the community governing the cryptocurrency on how to proceed.
The debate sometimes can lead to disagreements, with one side being loyal to the original principles and philosophy, while the other will insist on making permanent changes to the code to make the technology adapt to new circumstances. If these issues are not resolved, the community usually decides to split and part ways, with one side using the original coding, and the other party making changes in the code, essentially creating a variation of the original and following its path of blockchain.
Bitcoin and the FoxBTC Fork
Bitcoin has already seen a number of forks. There are 9 major forks, such as Bitcoin Cash and Bitcoin Gold, while an astounding 25 more are planned in this year alone. FoxBTC is one of the planned forks that will initiate on 30th April. The team working on the fork, Z-Magnetars has essentially identified a couple of crucial issues that they are fixing with the change in coding:
- Increased Block Size: By raising the current block size to 10MB, it will enable scalability and allow for more transaction volume, having a minimum of a 3 minute block interval.
- Average GPU Mining: The current mining state of Bitcoin is so power hungry that it is becoming a problem for countries that have its farm, causing a huge surge in power demands. FoxBTC will counter this by allowing only smaller GPU setups to mine the coins, disabling huge farms and bringing down the costs.
- Hybrid POW/POS: Bitcoin currently works on the Proof of Work protocol, where more powerful systems take advantage and have a higher chance of mining a block. FoxBTC will use a combination of both Proof of Work and Proof of Stake, allowing normal users to earn coins by holding on to coins. POW will give around 50 coins per block and POS will give a 6% annual incentive.
FoxBTC’s fork will occur on 30th of April, on block 520419 of Bitcoin, having around 16,500,000 coins in total circulation, with 5,500,000 for users, 5,000,000 for airdrop and 1,000,000 held in reserve for Z-Magnetars developers.
For more information on the hard fork, visit their website: https://www.foxbtc.io/