Understanding Ethereum Forks and Private Keys: Will I Receive Coins on Both Forks if I Hold BTC on Blockchain.info?
In the event of a Bitcoin split or hard fork, the situation can be complex, especially when it comes to holding cryptocurrencies like Ethereum. Many people mistakenly believe that they will receive coins on both forks if they hold their private keys on a blockchain service like Blockchain.info. However, this is not entirely accurate.
What happens during a fork?
A fork occurs when two different versions of a cryptocurrency’s protocol are created, resulting in two distinct branches: the original and the new (or alternative). This can happen for various reasons, such as disagreements over a certain change or new development goals. During a fork, each branch continues to operate independently, and users who hold coins on one branch will not automatically receive coins on the other.
Private keys vs. public addresses
You might be wondering why holding private keys would make any difference when it comes to receiving coins on both forks. The key concept here is that public addresses are used for transactions, while private keys are used for controlling and managing a user’s assets.
When you hold your Bitcoin (BTC) on Blockchain.info, the blockchain service manages your private key, allowing you to control and manage your wallet. However, this does not transfer ownership of the BTC itself to you. Instead, it creates a copy of the existing data in the blockchain, which is then stored on the private key.
Will I receive coins on both forks if I hold BTC on Blockchain.info?
In short, no. Holding your private keys on Blockchain.info will still mean that you have not «owned» the BTC itself. You are only controlling and managing a copy of the existing data on the blockchain.
If there is a Bitcoin split or hard fork in Ethereum (or any other cryptocurrency), you can expect to hold two separate versions of the protocol, each with its own private keys. However, you will still not receive coins on both forks if you hold your private key on Blockchain.info. You would essentially be holding multiple wallets with different private keys.
What happens when I hold my Ethereum (ETH) wallet on Blockchain.info?
If you have an Ethereum (ETH) wallet on Blockchain.info and decide to participate in a fork, here’s what might happen:
You will still have your original Ethereum wallet on Blockchain.info.
If there is a fork in the protocol, you may receive new private keys that reflect the changes made during the fork.
However, these new private keys will not automatically transfer ownership of your ETH. Instead, they will create a new copy of your existing data in the blockchain.
In summary, holding your private key on Blockchain.info does not give you automatic access to coins on both forks if there is a split or hard fork in Ethereum (or any other cryptocurrency). You must manually update your wallet and receive the new private keys for each branch.
Ethereum: In case of the Bitcoin split – when holding BTC on blockchain.info – will I receive coins on both forks?
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Understanding Ethereum Forks and Private Keys: Will I Receive Coins on Both Forks if I Hold BTC on Blockchain.info?
In the event of a Bitcoin split or hard fork, the situation can be complex, especially when it comes to holding cryptocurrencies like Ethereum. Many people mistakenly believe that they will receive coins on both forks if they hold their private keys on a blockchain service like Blockchain.info. However, this is not entirely accurate.
What happens during a fork?
A fork occurs when two different versions of a cryptocurrency’s protocol are created, resulting in two distinct branches: the original and the new (or alternative). This can happen for various reasons, such as disagreements over a certain change or new development goals. During a fork, each branch continues to operate independently, and users who hold coins on one branch will not automatically receive coins on the other.
Private keys vs. public addresses
You might be wondering why holding private keys would make any difference when it comes to receiving coins on both forks. The key concept here is that
public addresses are used for transactions, while
private keys are used for controlling and managing a user’s assets.
When you hold your Bitcoin (BTC) on Blockchain.info, the blockchain service manages your private key, allowing you to control and manage your wallet. However, this does not transfer ownership of the BTC itself to you. Instead, it creates a copy of the existing data in the blockchain, which is then stored on the private key.
Will I receive coins on both forks if I hold BTC on Blockchain.info?
In short, no. Holding your private keys on Blockchain.info will still mean that you have not «owned» the BTC itself. You are only controlling and managing a copy of the existing data on the blockchain.
If there is a Bitcoin split or hard fork in Ethereum (or any other cryptocurrency), you can expect to hold two separate versions of the protocol, each with its own private keys. However,
you will still not receive coins on both forks if you hold your private key on Blockchain.info. You would essentially be holding multiple wallets with different private keys.
What happens when I hold my Ethereum (ETH) wallet on Blockchain.info?
If you have an Ethereum (ETH) wallet on Blockchain.info and decide to participate in a fork, here’s what might happen:
In summary, holding your private key on Blockchain.info does not give you automatic access to coins on both forks if there is a split or hard fork in Ethereum (or any other cryptocurrency). You must manually update your wallet and receive the new private keys for each branch.
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