What is Fork?
A fork in the context of cryptocurrency is a change to the protocol of a blockchain network. It occurs when the rules governing the blockchain’s operation are updated, either through a soft fork, which is backward-compatible, or a hard fork, which creates a completely new version of the blockchain. Forks can happen for various reasons, such as to add new features, fix bugs, or resolve security issues.
In a hard fork, the blockchain splits into two, with one branch following the old rules and another following the new rules. This can result in the creation of a new cryptocurrency, as was the case with Bitcoin Cash, which resulted from a hard fork of Bitcoin. A soft fork, by contrast, updates the protocol without splitting the chain, as all nodes remain compatible.
Forks can also occur due to disagreements within a cryptocurrency community about how the network should evolve. These disagreements can lead to significant changes and the formation of new projects based on differing visions.
