Thread by @0x_armin

.@stablekwon has proposed to fork #Terra_Luna blockchain. This is a momentous decision.

Before voting on it, let's first look at 2 notable blockchain forks. Why we needed those forks, who proposed them, and how it ended.

Let's dive in. 👇 1/n

1. The infamous DAO hack.

In 2016, a group of @ethereum users launched a DAO- an investment fund that allowed members to vote on and fund future Ethereum-related projects. They raised more than $160 million worth of #ETH from about 11k investors.

Then came the hackers. 🥲 2/n

They found a bug in the smart contract and siphoned 3.6mil ether from the fund.

Think of smart contracts as vending machines. Pop in a dollar, pick the drink and it should dispense it. A vulnerability is akin to getting a free drink without paying.

The community responded. 3/n

It was proposed that the @ethereum chain be brought back to its snapshot before the DAO was formed. This meant that investors would still have their money!

Does this make you feel a little off? 4/n

Many members of the community felt that code was king- you shouldn't be able to revert the blockchain just because there was a bug!

Imagine winning Monopoly- but instead of congratulating you, your friends say 'let's reset the game'.

Yet, the other side had valid concerns. 5/n

This was a large amount of money being stolen. If this heist was not reverted, the average user may be too skeptical to use #crypto. Remember, this was 2016.

Hackers will also be compelled to look for more bugs in the code.

Eventually, @VitalikButerin stepped forward. 6/n

It was decided that the fork will happen- the blockchain reverted to the snapshot before the DAO was formed. The snapshot chain remains as @ethereum, while those who believe that code is law stuck with Ethereum Classic.

So what happened to them? 7/n

@ethereum went on to rebound from its price of $14 to an ATH of $4.8k. Not a bad outcome for such a contentious decision.

Meanwhile. Ethereum Classic sells for 21.44 USD per token.

What happens when there is no clear leader of a project? Let's look at #BTC in 2017. 8/n

2. The blocksize war

#BTC was founded by Satoshi Nakamoto, aka nobody-knows-who-the-fuck-he-is. So when disagreement arose in the #BTC community regarding scalability, there was no clear figure to direct the community.

The community fragmented into 2 camps. 9/n

Camp 1, the SegWit camp, felt that removing signature data from each transaction is sufficient in increasing the #BTC's scalability.

Camp 2, the double block size camp, believed that increasing block size is the best way to scale up.

This was not just a technical dispute. 10/n

Fundamentally, the disagreement was over who controlled #BTC's protocol rules. Satoshi Nakamoto is like the Bible- available for all to read, but hard for everyone to reach a consensus on.

The two camps went their separate ways. 11/n

Camp 2 forked #BTC to create Bitcoin Cash, while Camp 1 continued with the original blockchain. New innovations like #LightningNetwork are now implemented to increase transactions per second.

Back to #Terra-Luna. 12/n

#Terra has a clear leader in @stablekwon, so the development will probably be much more akin to @ethereum than #BTC.

But there are still thorny questions that remain to be answered- 13/n

How will holders of #UST and #LUNA be compensated? How does #LUNA plan to grow without adoption of #UST? What are key advantages of #Terra's technology over other chains?

Do you support the fork? Let me know your thoughts. 14/end