Blockchain fork

A blockchain fork is a deliberate change to a distributed ledger protocol that alters the rules of how blocks are validated. Forks are the software updates of cryptocurrencies. Some forks are soft. Soft forks are backwards compatible. Old nodes still recognize new blocks. Soft forks are usually small and less disruptive. They add tighter rules or optional features. Other forks are hard. Hard forks are not backwards compatible. Old nodes will reject new blocks. A hard fork creates a new chain that starts from the same transaction history. Both chains carry the same past, but they diverge from the moment of the split. Consensus matters. Blockchains live by agreement and not by decree. If most participants adopt the change the network moves together. If they do not agree the network can split. A split can produce a distinct cryptocurrency that shares the original history. Holders of coins before the split may find balances on both chains after the split. That can feel like a windfall but it also creates risk. Smaller chains can become less secure and more vulnerable. Hash power and node count can fall. That can lead to slower confirmations and greater chances of attack. Wallet providers and node operators must update their software to follow the chosen chain. Hardware wallets and custodial services need to prepare too. Users should keep private keys safe and follow official guidance from their wallet provider. Replay protection is an important technical detail. Without it transactions on one chain can be copied on the other. That can cause accidental loss of funds. Forks also enable progress. They let communities fix bugs, add privacy features, scale capacity, and improve fees. They let networks evolve without a single boss. But they are political as well as technical. Decisions depend on miners, validators, developers, exchanges, and ordinary users. Each group votes with software, hardware, or coins. Transparent discussion helps to avoid chaotic splits. Clean upgrades that gain broad support are less risky. Contentious hard forks can create drama and market volatility. Learn the basics, watch official announcements, and wait for wallet support before moving funds. Knowledge is the only stable currency in chaotic moments.