Hard forks pose a threat to the stability of cryptocurrency


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. The study states that clear guidelines on software updates could help stabilize cryptocurrencies.

The paper was prepared by a group of researchers, led by the Oak Ridge Institute for Science and Education association Benjamin Trump, who examined the state of "cryptocurrency" forks examining over 800 forks and hard forks by Bitcoin (BTC).

While the study states that digital currencies have the potential to significantly change trade and information exchange on a global scale due to underlying blockchain technology, Trump argues that governance challenges threaten the stability of the crypt. "Breaking the blockchain of a cryptocurrency in this way could cause people to lose confidence in it and its ability to survive as a reliable trading vehicle," continues Trump.

The analysis found that a good amount of BTC forks and altcoins did not survive more than several months, although some of them were entrenched and lasted for years. For researchers, hard forks will become more regular, with a maximum of 50 possible only in 2018.

"The hard forks pose a threat to maintain a stable and predictable operational platform that is essential if cryptocurrencies are to be adopted for daily financial transactions. "

Regarding a possible future of BTC as a recognized medium of exchange Internationally, Trump has argued that operators in the BTC network, such as mining crypts, wallet developers, exchanges and others, they will have to develop better governance to provide stability.

Another study conducted by the Initial Coin Offering Initiative (ICO) company Satis Group at the end of August, suggests that the price of BTC could potentially reach $ 98,000 over the next five years. According to the report, the value of the criptoassets needed to sustain the economy will increase from about 500 billion dollars next year to 3.6 trillion dollars by 2028, while 90% of the criptoasset value will be extracted from the penetration of offshore deposits in the next ten years.

[ad_2]Source link