According to Recent Studies, Hard Forks Carry Stability Threat for Cryptocurrency

1,074

According to data released on September 12, the stability of digital currencies is under threat due to updates and software changes, also known as “hard forks.” As reported in the study, the situation can be stabilized by introducing clear recommendations and rules for updating the software.

The studies were conducted by a team of experts from the Oak Ridge Institute for Science and Education. The group worked under the guidance of Benjamin Trump, who studied the appearance and status of cryptocurrency forks, analyzing 800 examples of soft and hard forks in the Bitcoin system.

The researchers determined that, despite the positive impact of plugs on commerce and information exchange based on Blockchain, the introduction of plugs may negatively affect the stability of the cryptocurrency. Trump said:

“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.”

According to the data, during the analysis, it was revealed that a significant number of cryptocurrency forks did not last more than several months on the market, while some of them were entrenched in the market and hold their positions for a long time. Researchers are sure that in 2018 the number of forks will increase and can reach 50 units. Trump said:

“Hard forks are a threat to maintaining a stable and predictable operating platform that is essential if cryptocurrencies are to be adopted for daily financial transactions.”

Speaking about the future of BTC as a common means of exchange at the international level, Trump noted that BTC operators should provide more effective management methods aimed at ensuring stability.

This post is also available in: ruРусский

Don't miss a single story and get a chance to win up to 1,5 ETH!

Subscribe to our free newsletter and follow us
SUBSCRIBE
close-link