Introduction
Chain Split is the situation where a Blockchain is divided into two branches, which is also known as forking and we have discussed the forking in our earlier article.
Now, a chain split not only splits an entire single continuous chain but also some problems are faced in the governance and security of a blockchain. Which makes its members and policymakers arguable over the need to find an immediate solution and tackle the problem of Chain splits.
What is Chain Split in the network?
Chain Split is a complete distribution of a blockchain into its subordinate branches which occurs due to the creation of new nodes.
Now, Chain Split also results in the distribution of many digital files and data which are transferred from one blockchain to another blockchain formed due to the changes in the multiple computer systems.
These computer systems are interlinked and are operated from several corners of this world, when disagreeing upon an agreement of block creation, adopted the way to break the blockchain and to create a new blockchain splitting from the previous one.
How is Chain Split caused?
Now, as we have already told you, the disagreement between the miners or the two blockchain groups or the members of those communities which have a public network leads to the diversification of the Blockchain here.
One can also give some real-world examples of such Chain Splits that have been formed due to some sort of disagreement between the users like:
- Bitcoin Cash (BCH) from Bitcoin BTC
- Reason for Chain spilt: over the scalability of Bitcoin for a larger user base.
- Litecoin (LTC) from Bitcoin
- Reason for Chain Spilt: It was forked to prove itself as the silver version of Bitcoin which was considered as ‘Gold’, at its time of popularity.
- Ethereum Classic (ETC) from Ethereum (ETH)
- Reason for Chain Spilt: Regarded recorded data amends to return the stolen money of its users.
- Dogecoin (DOGE) from Bitcoin
- Reason for Chain Spilt: It was forked due to creating a new blockchain that carries the name of a viral internet meme named Doge memes.
What happens when a Blockchain Splits?
The incident of a Chain Split also occurs when the cryptocurrencies cross the value of a block number, which further, results in the transferring and copying of the Codebase from the older blockchain which is not finished but can be grown independently without needing any support of its subordinate network.
The network from which the new network was created is referred to as the Parent chain, while the new network created is known as new chain, the splitting of various blockchains results in:
- Creation of an open-source technology
- It also led to the generation of different hashing algorithms.
- Increased supply of cryptocurrencies.
What can be the solution of Chain Splits?
Blockchain governance is considered as the effective solution for reducing the risk factors that are developed due to the chain splits. A uniquely designed On-chain governance can harness the concept of decentralization and also it helps in updating the consensus mechanism.
The Bottom Line
Chain spilt must not be taken for granted, because several factors are interlinked to its occurrence, it also poses a big challenge to the concept of decentralization and development of many on-going digital projects, therefore there is a need for a great Governance entity that can compensate for the potential of risk factors.
