What is Chain Split?
Let's find out Chain Split meaning, definition in crypto, what is Chain Split, and all other detailed facts.
Chain splits are essentially a split in the blockchain that will result in a few versions of the initial chain.
Software forks arise when developers clone the codebase of an actual prototype and start their own separate development on top of it. As an outcome, one or more different projects are separated from the initial, "parent" project.
These splits happen for a few different reasons. One of which is that occasionally, developers insist that a cryptocurrency is decent in most aspects, but could benefit from a few changes. For instance, Litecoin (LTC) split from Bitcoin (BTC) to enable quicker block generation time, increase the total number of coins, and change the hashing platform.
Dogecoin (DOGE), on the other hand, is simply a joke. It is a fork of Litecoin that got the idea from an internet meme and managed to reach a market capitalization of approximately $2 billion.
Another factor that might cause a chain split is moral dissimilarities. For example, Bitcoin Cash was separated from Bitcoin due to divergent views about how to grow the coin for a broader customer base.
Because of the debate over whether cryptocurrency developers should be able to alter data stored on the blockchain in an effort to return lost coins to their previous owners, Ethereum Classic (split from Ethereum) was formed.
A big amount of cryptocurrencies were launched as open-source projects, specifically in the early years. Because of this, it is usually overly uncomplicated to fork a project, even for those developers who seem to lack the skills to develop their own coin. A few of the most popular cryptocurrencies today are forks or forks of several parent projects.