In recent weeks, the implosion of earth network and its tokens — the TerraUSD algorithmic stablecoin (UST) and the LUNA governance token — rocked the cryptocurrency world.
This week, the founder of the network and CEO of Terraform Labs, Do Kwon, returned to the spotlight, as he propose a plan to resurrect the networkthrough a fork (“fork“) of blockchain.
However, the nomenclaturefork” is still unknown to many who participate in the crypto world or who have an interest in it.
For that reason, the Crypto Times elaborated an explanation to help in the understanding of this term and of what could happen with the Earth network.
After all, what is a “fork”?
Before understanding what a “fork”, it is important to keep in mind the idea of decentralization and community in the cryptocurrency world.
In the case of the network Bitcoin (BTC), for example, there is not a single person or company that maintains the blockchain. This is maintained in a decentralized way by developers, miners, full node users and the community that believes in the network proposal.
However, as blockchain networks tend to involve the participation of many people, disagreements about the direction the network should take are common.
There may be situations in which those who do not agree with a particular proposal leave the network, without generating new changes. But, there are cases where those involved in blockchain decisions have different opinions and decide not to leave the network, but rather to follow different paths.
This is where the “fork”.
When a blockchain goes through a “fork”, it is copied and modified. The original blockchain software still exists, but separately from the new one, like a road that splits in two.
To illustrate more clearly, imagine that the management team of your favorite restaurant has a strong disagreement and decides to go their separate ways.
Part of the team will found a new restaurant that can replicate the same menu items, but after the split, the new restaurant would follow a different path than the original.
According to Binance Academyyou forks are common in open source blockchain projects.
Terra (LUNA): Network will not have a ‘fork’ in blockchain
if it depends on the community; understand
Differences between “hard forks” and “soft forks”
Blockchains can go through two types of fork: “hard fork” and “soft fork”. See below for the definition of each one.
What is a “hard fork”?
“hard fork” (or “drastic fork”) indicates a software update that is incompatible with previous versions.
In its new configuration, the nodes (“nodes”), which validate network transactions, are able to communicate only with nodes that work in the new version.
With this, the blockchain is divided in two: one network will have the old rules, while the other will have the newer ones. The networks continue to work in parallel, each with its blocks and transactions, but on different blockchains.
This has already happened with the Bitcoin network in August 2017. At the time, the network’s blockchain was split, giving rise to the Bitcoin Cash (BCH)which has the original Bitcoin codebase without the Segregated Witness (SegWit) update.
This is also the case for the Earth network. The network founder’s plan, released this week, proposes a “hard fork” of the blockchain.
Do Kwon’s new plan proposes forking the blockchain into a new network, which will be called “Earth”, with the Luna token, while the old blockchain would become “Terra Classic”, and the original Luna token would be renamed “Luna Classic” (LUNC).
What is a “soft fork”?
“soft fork” (or “moderate fork”) designates a blockchain upgrade that is backwards compatible. In this case, validator nodes are still able to communicate with nodes that have not yet been updated.
In this case, the addition of a rule that does not conflict with those that are already established usually occurs.
One example is the Segregated Witness update mentioned earlier. SegWit proposed a change in the format of blocks and transactions on the Bitcoin network, without changing the way validators interact with the network.
As a result, not all nodes were updated immediately after the implementation of SegWit, as there is no urgency, as it does not compromise the functioning of the network.
Earth and the clash of the “fork” in the network
Do Kwon’s proposal was put to a vote last Wednesday (18), but was criticized due to the “dictatorial model” adopted, which goes against decentralization, according to Allnodes CEO Konstantin Boyko-Romanovsky.
Prior to the official vote, the Land Governance Forum proposed an unofficial poll on the matter. About 7 thousand people participated, 91% of them against the “fork” of the blockchain.
“Ninety percent of the active community is against fork, and yet the founder forces his narrative without listening to his own community,” he said.
Receive Money Times newsletters!
Sign up for our newsletters and always be well informed with the news that enrich your day! Money Times brings 8 curators covering the main themes of the market. Register now and receive the information directly in your email. It’s free!
Disclaimer
THE Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.
Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
