Many countries around the world have provisions for shutting off the Internet as well as isolating itself from the Internet (where networking within borders still flourishes), any transaction processing (mining) going on within that country will only find nodes within that country and start following its own chain.
Is this a correct assumption?
Secondly, if this is a correct assumption, how will the network deal with this once it comes back online?
I foresee alt-chains emerging due to this, and persisting with their own exchange rates, very similar to the different fiat currencies today.
- Are my assumptions correct?
- What, if any, provisions does the bitcoin protocol have for forks of this size (which wouldn't necessarily be that large, but still have real consequences for people forced to use them)?