What currency is generated after a hard fork (Does a hard fork create new coins)?

What currency is generated after a hard fork? Ethereum has undergone a major upgrade in its consensus mechanism in the Bitcoin network. This took place at the “Blockchain Technology and Application Conference” held on January 15, 2016, which was the first annual conference jointly organized by miners and exchanges. Two important changes occured during this conference: first, updates were made to the main network, and secondly, modifications were made to the algorithm (such as hash rate) to make the network more secure and stable. Lastly, the Ethereum chain was redesigned to support applications for a wider range of assets, such as DeFi.

Does a hard fork create new coins?

The development speed of blockchain technology is fast, and Ethereum has undergone three consecutive upgrades, but each hard fork creates new coins. During the previous bull market, the prices of Bitcoin and Litecoin fell due to two main reasons, one of which was the split, causing significant losses for users.

Firstly, due to flaws in the consensus mechanism of Bitcoin, miners were unable to control their own computing power, resulting in changes in block rewards. Secondly, when transactions are packaged in a new state, different tokens are created. This situation is quite common and often leads to network congestion. However, if such handling is not carried out, it could cause serious system problems. For example, Ethereum founder Vitalik Buterin believes that “we cannot guarantee that transactions are safe and effective.” Therefore, the new coins that will be generated after this hard fork may bring significant benefits to users.