What Is a Blockchain Fork?

A fork refers to a protocol change or split within a blockchain. It happens when the network is either temporarily or permanently divided into two separate chains. Forks occur when participants in the network cannot agree on a common set of rules or when deliberate updates are introduced to improve the blockchain.

Forks are a natural part of blockchain evolution and allow for the implementation of new features, security enhancements, or diverging visions within a community.

Types of Forks

1. Soft Fork: A soft fork is a backward-compatible upgrade. This means nodes that do not upgrade can still process valid blocks. Soft forks are typically used to introduce new functionality without splitting the network.

2. Hard Fork: A hard fork is a non-backward-compatible change. It results in a permanent split in the blockchain, creating two separate networks with different rules. Hard forks can lead to new cryptocurrencies — for example, Bitcoin Cash is a result of a Bitcoin hard fork.

Why Forks Happen

• To implement new features or performance improvements
• To fix security vulnerabilities or bugs
• Due to disagreements within the community about future direction
• As a response to external events, such as hacks or regulatory developments

Notable Fork Examples

• Bitcoin Cash (BCH): Created in 2017 as a hard fork of Bitcoin to increase block size and improve transaction throughput.
• Ethereum Classic (ETC): Emerged in 2016 as a result of a hard fork following the DAO hack, with part of the Ethereum community choosing to preserve the original chain.

Floin Insight

At Floin, we closely monitor forks as they can impact the security and reliability of blockchain networks. We support ecosystems that implement changes thoughtfully and through community consensus. As a user, you benefit from a curated selection of cryptocurrencies focused on long-term innovation and trustworthiness.