Blockchain Dev Review — Forking to Create A New Cryptocurrency
Every blockchain entrepreneur has wondered how to pick a suitable blockchain platform, that will be a perfect fit for the project implementation. But how to decide if the modern blockchain development provides such a big diversity?
Different business industries call for various ways of forking the blockchain for growth. But the process needs tech adaptation depending on the niche. That’s why today we want to explore the ways of cryptocurrency development that allow creating new crypto by forking a blockchain you have.
As a crypto company with vast experience, we’ll analyze a few successful solutions for you, to help you fully understand how to start your own crypto.
FORKING 101: How it’s used in blockchain?
There are a few essentials that you must know before you even consider to create your own block chain.
A blockchain fork is basically a division of any blockchain that we currently have. There are 2 main types of blockchain forks:
- Soft—aimed to add functional network changes, where the system remains the same. But note that all current nodes need to be updated to suit the new rules
- Hard—are the outcome of a new and customized cryptocurrency, like Dash, BitcoinCash, or Ethereum classic.
With open-sourced codes, you can copy the git repository and create a homogeneous blockchain environment. Many blockchain companies use such an approach in custom solutions which aim to propel the current solution.
Knowing what forks are, is excellent. But it’s not enough! Let’s see where you need to use forks, to begin with before we start defining the key criteria for selecting a blockchain platform to fork.
SHOULD I USE A FORK OR NOT?
In our blockchain app development experience not all projects require forking. Using a fork is reasonable if you already have a blockchain and you want to benefit from the existing solution, but make it more simple. You might also want to add a few custom features.
Forking is also a commonly used way of accessing Ethereum EVM tech. But this case requires creating forks in Geth or Parity nodes and then tailoring them to new requirements.
Why blockchain dev forks?
It allows for decreasing development expenses, as the process requires less time unlike developing a new custom cryptocurrency.
Now you know the basics let’s move on to the main question—how to pick a suitable blockchain platform to create a fork?
Blockchain Company Tip On Picking Blockchain Platform To Fork
Our blockchain development company often uses Bitcoin-based and Ethereum-based techs in order to create a new custom cryptocurrency. Let’s see what are the benefits and drawbacks of using each one!
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Because Bitcoin was the first cryptocurrency, many programmers have taken a look at its underlying technology. This is why there are so many forks of Bitcoin technology currently available.
As a cryptocurrency development company, we suggest using Bitcoin tech in your business project if it needs simple payments and fulfilling regular system tasks. But if it has to handle more complex tasks, you should better opt for other Bitcoin or Ethereum-based cryptocurrencies, as your push point of making your own.
What is Dash? It’s a direct fork from Bitcoin, that contains all the benefits of the original tech as well as adding numerous more. One of these ‘upgrades’ is the employment of X11 hashing algorithms for a low-energy consuming PoW and alteration of masternodes. Last can be used to create a wider variety of operational features, such as DAO creation for protocol governance.
Moreover, masternodes are traditionally seen as a more secure solution. Most top crypto companies use it, as it prevents malicious attacks, as one needs to deposit a lot of native cryptocurrencies to successfully process one node.
PivateSend and InstantSend services are used in Dash to ensure the security and speed of transactions. The SPORKs mechanism makes the protocol easy to upgrade and adapt to the future software updates of the node.
Another example of the fork is PIVX, a younger blockchain. It is a fork of Dash. PIVX keeps some Dash benefits with a mix of new adjustments that were taken from other innovative solutions.
What does PIVX take from Bitcoin and Dash?
- Bitcoin wallet technology
- Dash master node models
What’s added to PIVX?
- A proof-of-stake consensus model—PIVX uses it to boost transaction speed and blockchain functionality.
- SwiftX service—Used for secure transactions and better node upgrades.
Qtum is a fork of Bitcoin, but it also supports the Ethereum Virtual Machine. DGP management incorporated into Qtum’s system allows for altering new blockchain settings with the use of smart contracts, thereby decreasing the number of hard forks.
Qtum is different from previous examples of blockchain application development. It doesn’t use master nodes and DAO governing. But Qtum is based on PoS consensus, which allows to stake and process a node.
Moreover, Qtum is used by many companies that provide blockchain app development services as it has a very large community. It ranked 3rd after Bitcoin and Ethereum popularity.
As a blockchain technology company, we can say that Ethereum blockchain is currently at the top of the techs to start your own fork to create a new cryptocurrency. Why? Mainly because of Solidity smart contracts support.
If you choose Ethereum to fork, the most common place is Geth or Parity nodes. After that, when you start your own cryptocurrency, you can add and customize it in any way you wish. You can add cool features like custom wallet cryptography or others.
But your options don’t stop there! Our blockchain app development company still has a lot of blockchains for you to explore. Read on!
Ethereum-based, ConsenSys Quorum, is a fork of the Geth node. Its core goal of it is to facilitate successful blockchain adoption for industry purposes.
Quorum is not traditional Ethereum and it’s not based on PoW. The consensus models that it adopted are more fitting for permissioned consortium chains. It uses the Proof-of-Authority, Raft-based, and Istanbul BFT consensus models functioning.
Additionally, ConsenSys Quorum runs its own extra transaction encryption services. For it, Quorum uses Tessera and Constellation—built-in systems for generating, encrypting, decrypting, and distributing private transactions. They also facilitate the self-management of all found nodes.
As a blockchain development services company, we should note that Quorum allows making changes and customizing the blockchain to fit unique requirements. For example, you can adjust a few consensus models while simultaneously eliminating POW.
Avalanche network is probably one of the most well-known Ethereum forks. The interesting thing about it is that Avalanche is not just a single blockchain, but an arrangement of the complex blockchain protocol, which can host many blockchains.
The biggest Ethereum obstacle is scalability, and Avalanche is created to deal with it. And it successfully solves it with:
- Stepping by the casual Ethereum PoW
- Taking the full EVM toolkit from the Ethereum Geth node
- Using a new kind of the PoS consensus
The new Avalanche model provides great final results, approximately 3 sec per transaction, and an infinite amount of validators participating in the consensus. The accessibility of the MetaMask or Truffle tools and PoS adoption enables a fast smart contract creation and incredible throughput.
Our crypto company team has explored a few most popular examples out there that you can use to get started with your own cryptocurrency. However, it’s worth mentioning that you can take any open-sourced blockchain code and fork it, altering the features for your needs.
Note that you are not limited to the abovementioned ledgers and you actually can fork any blockchain code: Polkadot, EOS, Tron, or other.
As a blockchain app development company, we are confident that our recommendations and review of the top blockchain platforms will be a boost on the way to leveling up your current business by implementing blockchain. If you want to know more, stay tuned for part 2!
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