What are Ethereum’s forked coins?

What are Ethereum’s forked coins? Ethereum’s hard fork separates into two parts, Bitcoin and Ethereum. The upgrade of Ethereum is called Ethereum 2.0, which is an important update for the scalability of the blockchain. Shortly after the Ethereum merger, a new data center (called “mainnet”) will be mined by Bitcoin. This means that the Bitcoin network can handle more data storage, transaction processing capability, and computing power, while also allowing more applications to run on Ethereum. If Ethereum transitions from PoW mechanism to the POS consensus algorithm, miners can achieve their own business logic by mining this new decentralized database.

Bitcoin and Ethereum have two main differences. The main difference lies in the fact that they are both generated through proof-of-work technology, so they have different development directions and advantages compared to other cryptocurrencies.

Ethereum is a virtual machine that uses a proof-of-stake system to verify smart contracts. When users use this software, they receive a payment instruction similar to Bitcoin Cash. However, since this payment function requires a large amount of computer resources, it cannot support these payment methods. Therefore, for most users, there are only two options: to directly purchase Bitcoin or to create their own tokens on Ethereum; the second option is to exchange ETH into ERC20 tokens, which means that users can deposit a certain type of digital assets on them.

Currently, the most popular Bitcoin forked coins are BCH and BSV. Although Bitcoin has experienced several bull markets, many people still have doubts about BCH or BSV. For example, some people believe that BTC and BSV are based on the Bitcoin chain, or some people are worried that Ethereum may be vulnerable to hacker attacks, and so on.

So why fork BCHA into ETH? The answer is simple: after the Ethereum merger transforms the previous POW consensus algorithm into POS, there will be more value. For example, BCH can be used as a basic protocol layer for Bitcoin, and there is another possibility, which is to let Bitcoin holders participate in the circulation of Bitcoin by changing the consensus rules.

Of course, some projects have tried to initiate discussions within the Ethereum community by splitting Bitcoin SV, but the results were not ideal. Firstly, because no one in the Bitcoin community wants to issue their own token, which led to a 50% collapse in the price of Bitcoin. Then, as more and more institutions start to invest in the construction of the Ethereum ecosystem, many teams even think about developing their own platforms instead of issuing their own tokens like before. The final result is that Bitcoin becomes more decentralized and environmentally friendly, which makes Bitcoin unsuitable for transactions and incomparable in terms of trading volume.

On the other hand, although DeFi has become popular in recent months, there are still a large number of arbitrage opportunities in the market due to the surge in investor demand, especially for early investors in Ethereum.

What are Ethereum’s forked coins called?

The two forked coins running on the Ethereum network, ETH and ERC-20 tokens, are called “hard currency”. They use blockchain technology to achieve faster and cheaper transactions. One of them is Bitcoin (BTC) or Litecoin (LTC).

If the Ethereum worth $2 billion in the past year is pledged to Ethereum 2.0, then it is the “hard currency”. Simply put, they can be used to solve some challenges Ethereum currently faces, including scalability issues.

However, because these upgrades involve issues with the Ethereum protocol itself, this situation results in different outcomes: ETH will no longer coexist with the main chain; ETH will not depend on the main chain and will adopt the PoS consensus mechanism; ETC will fully replace the original mainnet.

In order to convert these two new assets into a new form of currency, we have designed a new cryptocurrency called CHZ. This cryptocurrency is hosted by Coinbase and is automatically executed through smart contracts while retaining the functionality of existing ETH as an exchange medium. (coindesk)