Study: Hard Forks are Dangerous For Cryptocurrency Stability
A new study suggests that the stability of digital currencies is threatened by software updates, known as “hard forks,”according to a September 12 press release, CoinTelegraph reports.
At the same time, clear guidelines on software updates could help stabilize cryptocurrencies.
The researchers noted that digital currencies have the potential to significantly change commerce and information exchange on a global scale owing to the underlying blockchain technology, Trump argues that governance challenges threaten the stability of crypto. “Disruption of a cryptocurrency’s blockchain in this way might cause people to lose trust in it and its capacity to survive as a reliable vehicle of exchange,” Trump continues.
The paper was prepared by a group of researchers, led by the Oak Ridge Institute for Science and Education fellow Benjamin Trump, who reviewed the state of cryptocurrency “forks” by investigating over 800 soft forks and hard forks from Bitcoin (BTC).
According to the researchers, hard forks will be done regularly in 2018 and up to 50 are possible.
Regarding a possible future of BTC as a recognized medium of exchange on an international level, Trump argued that operators within the BTC network, such as crypto miners, wallet developers, exchanges and others, will need to develop better governance to provide stability.
Earlier this year, George Kimionis, the head of Coinomi project stated that the majority of hard forks including Bitcoin Pizza, Bitcoin Candy and Bitcoin God are using «Bitcoin» name purely for hype and easy money.