Airdrop and a cryptocurrency fork are two important pillars of the crypto world. Hard Forks and Airdrops are both ways of obtaining new coins. They are related but imperceptibly different. This has driven to chaos among people in the cryptocurrency industry. However, there are significant differences between these two processes. So, what exactly is the difference between Airdrop and a Fork?
What is Airdrop?
An Airdrop is a method by which creators of a token grant free tokens to some members of the crypto community. It is the offering of a cryptocurrency to a particular society of investors. This can occur via methods like ICO acquisitions and even as a freebie present by creators. In airdrops, tokens are basically designated to owners of a preexisting blockchain, like bitcoin or Ethereum.
In other words, Airdrop can either occur during a token’s pre-launch step by inserting a wallet address into an airdrop drive form or entirely by keeping another coin or token. For example, the first airdrop was conveyed by the OmiseGo organization (OMG), who gave 5% of their tokens to owners of Ethereum in order to adjust the Ethereum society with their concept.
Sometimes, users of cryptocurrency observe excessive price variations associated with a phenomenon called a fork. One of the most famous models of a fork is when a hard fork of Bitcoin, Bitcoin Cash, delivered prevailing Bitcoin holders an equal amount of Bitcoin Cash.
What’s the purpose of Airdrop?
The purpose is to create awareness. In marketing, information is frequently one of the fundamental moves in a buyer’s run. In the marketing world, human behavior plays a critical role in the characters of an airdrop, as a user is much more likely to buy a commodity they are accustomed to than a commodity they know nothing about. Therefore, those in command of issuing the tokens see an airdrop as a fundamental moment to provide people a drive of their tokens. Related to substitute models of advertising (such as Google Ads), airdrops are usually a more suitable method of promoting coins.
What are Forks?
Cryptocurrency forks are the changes in the protocol of the network or the conditions that transpire when two or more blocks have the same block height. In order to precisely understand cryptocurrency forks, it is essential to learn first how cryptocurrencies and the blockchain work.
In other words, Cryptocurrencies like Bitcoin, Ethereum, etc can be forked. This means that it either generates two variants of a coin or updates one version. Cryptocurrency forks are the alterations in their current code and the algorithm of blockchain transaction occurring in a new copy of the previously existing network with some alterations. The new fork may supersede its ancestor or, depending on a state, exist on a coextending record.
A fork happens when there is a notable separation in the consensus of users or a requirement to alter the underlying rules supervising the protocol. Changing the protocol of a blockchain needs developers to swiftly modify the code, and this method can have severe and enduring results. Bitcoin Cash exists today due to a continued conflict about Bitcoin’s scalability dilemmas. A group of prominent developers, investors, and miners who were not satisfied with the recommended solutions chose to raise the block size of Bitcoin, thus forking an extra variant of the protocol.
In other instances, an airdrop takes place principally as a method of increasing attention for a new token or coin. Owners of Bitcoin and Ethereum may be astonished to notice the addition of new coins to particular wallets, as several airdrops arrive unannounced.
Forks will remain a relevant part of the cryptocurrency world. Forks will be a truth of the cryptocurrency system because the present protocols are still serving to address scalability and secrecy problems. Due to the forks, cryptocurrencies are adjustable. They help to refresh protocols as required and let the soundest notions win out over the long-run.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news.
You might also like
More from Education
What is Proof of Stake?
The proof of stake method is drawing a lot of recognition these days, with Ethereum shifting over to this method …
What is a Stablecoin?
A stablecoin is a cryptocurrency that is pegged to the enumerated stable asset, like gold or the U.S. dollar. In …
How Does Zilliqa’s Sharding Work?
Zilliqa (ZIL), the cryptocurrency which has famously achieved sharding, has formally launched their mainnet on January 31, 2019. Zilliqa is …
