Stakeholders in cryptocurrency networks need clear advice on software changes that could be beneficial. Research shows that strict guidelines for network governance help to safeguard the privacy of users’ transactions and privacy and will help in keeping the value of their digital assets.
A new study published ORISE Fellow Benjamin Trump’s Springer journals Environment Systems and Decisions has shown that cryptocurrency hard forks are perilous to any coin’s stability. The September 12, 2018 press release summarizes the results of a study by Trump and his team who collected data from over 800 publicly known soft forks, altcoins, source code forks and hard forks from Bitcoin. The research team collected data from Map of Coins and the Bitcoin Exchange Guide.
The Springer research also revealed that there were many blockchains that forked out of the original Bitcoin software but many of them collapsed on the way with a few of them lasting anywhere more than just a few months. The researchers have also predicted that up to 50 more hard forks could happen in the remaining part of this year.
Benjamin Trump and his team believe these happenings are a hindrance to the extensive adoption of cryptocurrencies and stated:
“Hard forks are a threat to maintaining a stable and predictable operating platform that is essential if cryptocurrencies are to be adopted for daily financial transactions […] “Disruption of a cryptocurrency’s blockchain in this way might cause people to lose trust in it and its capacity to survive as a reliable vehicle of exchange.”
Making or Breaking the Value of Cryptocurrencies
The researcher further said cryptocurrency networks should be in apposition to forestall software changes that can help maintain the privacy and security of addresses and transactions to preserve the value of a cryptocurrency.
Trump emphasized that the place of good governance as far as cryptocurrencies are concerned cannot be overstated as this kept a digital currency’s value besides maintaining its long-term usefulness.
He explained further said:
“If Bitcoin, in particular, is to become a more globally recognized, reliable, and a predictable medium of exchange on an international scale, cryptocurrency miners, wallet developers, exchange operators and other stakeholders within the Bitcoin network need to generate more stability through good governance.”
The report further says cryptocurrencies like Bitcoin and the rest have what it takes to completely transform the global commerce and information exchange based on the blockchain technology behind the digital assets. The Springer report concludes that the only hindrance is the current lack of trust in cryptocurrencies by most people based on their high volatility.