Once it has copied all its DNA, a cell normally divides into two new cells. This process is called mitosis. Each new cell gets a complete copy of all the DNA, bundled up as 46 chromosomes. Cells that are making egg or sperm cells mustdivide in a different way.
Currently, there are two factions.
Core (with SegWit) and Unlimited.
When there is large enough number of mining nodes supporting/signalling their compliance or allegiance for one system, then a breakaway could happen.
This is purely my own understanding viz-a-viz mathematics, programming – that I attempted to answer one Digital Nomad’s question in a public group post.
Thank you! Very informative post. What I don’t understand though – what happens if you own, say, 1BTC and the hard fork takes place. Does your BTC turn into BTU or does it get split proportionally into both? Anyone has any insight on this?
There will be two branches – BTC and BTU. The hard fork branch will purposely disregard the original “longest chain” and that commences the breakout point. In the user/privatekey’s perspective, both chains have the “origin” and hence both can be used to verify your next transaction. Then by that virtue, one can use that privatekey with 1 BTC on the BTC chain, then use the same privatekey on the BTU chain – will still show 1 BTU. Since in the BTU chain, it was never used (since they breakout of the original chain).
I understand this about half way through and then you lost me 🙂
I need to hear this again slowly, for Bitcoin newbies.. 😉
I understand everything will be decided with my “next transaction” after the fork. What if I just hold (I mean, hodl..) and don’t make a “next transaction” for years?
Also it sounds like I could choose which chain to use? And it also sounds like I could double my 1BTC by using the same key on both chains?
In theory and maths, and in short, it does mean that – we get two chains to use – and with that, seemingly the coins are doubled, one on one chain BTC, and one on BTU chain. While it will likely create some havoc in the price since users will be left with a dilemma, and fear, perhaps selling one side of the coins heavily. Then (market mechanism) will find a fair price after the upheaval. Some people may sell everything (pressuring downwards). Some may buy in.
If you just held on to your privatekey, you simply retain the function of both chains. Another analogy is, this key used to be able to unlock your value in a chain. So the chain (not split but became) is two pieces that were identical when your key was created. Hence you are able to use your key on Chain A and Chain B. In real maths understanding, we don’t actually hold coins. We hold a value. The value is a mathematical formula/sum. The mathematical formula is locked up in a fuzzy chain or a blob (imagine a gigantic blub of interlocked chains, wires perhaps). You have a key that can open one part that belongs to you.
Additionally: Two chains doesn’t translate to doubling the value. One chain could after the upheaval, encounter heavy selling until the value is P. The other side is Q. Depending on how much people believe in the brand/association, psychology, and each P and Q could go both ways. Though P + Q is your new value.
Wow thank you so much! This makes it a lot clearer. I’m just going to hold for now. I guess my only remaining question is how I would choose my preferred chain technically, but I guess I can worry about that once the time comes.
Is there a time limit btw, for when the fork will happen, if it happens? Or is this a gradual process that will just flip once enough people (or master nodes or whatever) swing one way or another?
You’re welcome. When the time comes, there will be lots of discussion. Then observe, read, then decide. There is a trigger point for the BU chain to be live. Seems the trigger is x% of nodes signalling/abiding, to use their system. Look at these charts here.