When Blockchains Evolve

A fork occurs when a blockchain undergoes changes in its protocol, creating a new version of the chain.

A hard fork results in a permanent split, where the old and new chains become separate networks. A soft fork introduces changes that are backward-compatible, meaning older versions can still function.

Forks happen for various reasons, such as network upgrades, security fixes, or community disagreements. Some hard forks lead to new cryptocurrencies, while soft forks improve existing chains.

Understanding forks is essential for staying updated on blockchain innovations and potential investment opportunities.