Understanding Ethereum Forks and Private Keys: Will I Get Coins in Both Forks If I Have BTC on Blockchain.info?
When Bitcoin splits or hard forks, things can get complicated, especially when it comes to owning cryptocurrencies like Ethereum. Many people mistakenly believe that they will get coins in both forks if they store 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 protocol are created, resulting in two different branches: the original and the new (or alternate). This can happen for a variety of reasons, such as disagreements over a specific change or new development goals. During a fork, each branch continues to operate independently, and users holding coins on one branch do not automatically receive coins from the other.
Private Keys vs. public addresses
You might be wondering why owning private keys would matter when it comes to getting coins on both forks. The key concept here is that
public addresses are used for transactions, while
private keys are used to manage and control a user’s funds.
When you hold Bitcoin (BTC) on Blockchain.info, the blockchain service controls your private keys, 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 on the blockchain, which is then stored in the private key.
Can I get coins on both forks if I have BTC on Blockchain.info?
In short, no. Keeping your private keys on Blockchain.info would still mean that you do not “own” the BTC itself. You only control and manage a copy of the data on the blockchain.
If Ethereum (or another cryptocurrency) has a Bitcoin split or hard fork, you can expect to have two separate versions of the protocol, each with its own private keys. However,
you still won’t receive coins from both forks if you stored your private key on Blockchain.info. In effect, you’ll have multiple wallets with different private keys.
What happens when I store my Ethereum (ETH) wallet on Blockchain.info?
If you have an Ethereum (ETH) wallet on Blockchain.info and decide to participate in the fork, the following may happen:
- You will still have your original Ethereum wallet on Blockchain.info.
- If the protocol has a fork, you may receive new private keys that reflect the changes made during the fork.
*However, these new private keys do not automatically transfer ownership of your ETH. Instead, they create a new copy of your existing data on the blockchain.
In summary, holding a private key on Blockchain.info does not automatically give you access to coins on both forks if Ethereum (or any other cryptocurrency) has a split or hard fork. You will need to manually update your wallet and obtain new private keys for each branch.