What is an OHM Fork?
The OHM fork is a term used in the cryptocurrency industry to refer to a type of software upgrade or change to the underlying code of a cryptocurrency. A fork in cryptocurrency refers to a split in the blockchain, resulting in two separate versions of the cryptocurrency's ledger.
The OHM fork specifically refers to a change in the code of the OHM token, a cryptocurrency that was created to incentivize users to participate in the OhmConnect energy savings platform. The fork was implemented to address various technical issues and improve the overall performance of the OHM token.
Forks in cryptocurrency can occur for a number of reasons, such as the need to address security vulnerabilities, improve scalability, or make other changes to the underlying technology. Some forks result in the creation of a new cryptocurrency, while others result in a temporary split in the blockchain before the two versions are eventually merged back together.
For OHM token holders, the OHM fork meant that they needed to update their wallets or exchanges to be compatible with the new version of the token. Failure to do so could result in the loss of access to their OHM tokens or other technical issues.
It is important to note that forks in cryptocurrency are a common occurrence, and they are not always disruptive or negative events. Some forks result in the creation of new and improved cryptocurrencies, while others simply result in a more stable and secure platform for users.
Simplified Example
An OHM fork in a blockchain network is like when a group of friends decide to split off and play a different game. Imagine you and your friends are playing a big game of tag together. But one day, some of your friends decide they want to play a different game instead. They go to a different area of the park to play their new game, and you stay behind to keep playing tag. Just like your friends split off to play a different game, an OHM fork in a blockchain network occurs when a group of users split off from the main network and start a new separate network. This new network may have different rules or a different focus, just like the new game your friends are playing has different rules than the game of tag. The two networks will continue to operate separately, just like you and your friends are now playing different games.
History of the Term "OHM Fork"
The term "OHM fork" emerged within the DeFi (Decentralized Finance) community in early 2021, spurred by the rapid rise and widespread adoption of the OlympusDAO protocol. OlympusDAO, a decentralized reserve currency protocol, introduced a groundbreaking concept known as rebasing, where the token's supply undergoes periodic adjustments to sustain a stable price. With the increasing popularity of OlympusDAO, developers and entrepreneurs found inspiration in its innovative tokenomics and decentralized governance model. Subsequently, they embarked on creating their own versions of OlympusDAO, replicating its fundamental mechanics while introducing distinctive features and adaptations. Collectively, these derivative projects became colloquially known as "OHM forks."
Examples
Bitcoin Cash (BCH) - It is a fork of the Bitcoin blockchain that was created in 2017 to address scalability issues faced by Bitcoin. BCH has a larger block size limit, enabling faster transaction processing times and lower fees compared to Bitcoin.
Ethereum Classic (ETC) - It is a fork of the Ethereum blockchain that was created as a result of a disagreement among Ethereum's development community in 2016. ETC aims to preserve the original Ethereum blockchain, which is immutable and cannot be altered, unlike the Ethereum blockchain which underwent a hard fork to address security issues.
Litecoin Cash (LCC) - It is a fork of the Litecoin blockchain that was created in 2018. LCC aims to offer faster and more cost-effective transactions compared to Litecoin. It also has a different hashing algorithm, making it more suitable for miners with less powerful hardware.