What Is a Blockchain Fork?

In the world of blockchain technology, the term fork comes up regularly — especially when discussing major projects like Bitcoin or Ethereum. But what exactly is a blockchain fork, why does it happen, and what does it mean for users and networks?

In this article, we'll explain in simple terms what a fork is, the different types of forks, and what you should know as a crypto user.

What is a fork?

A fork refers to a split or change in an existing blockchain. It may result in a new version of the current blockchain — or even a completely new cryptocurrency with its own rules.

Forks usually happen due to software updates, disagreements in the community, or technical upgrades to improve performance or scalability.

Types of forks

• Soft fork: A backward-compatible change. Old and new nodes can still work together. Example: Taproot upgrade in Bitcoin.
• Hard fork: A non-compatible change that splits the blockchain. Two separate chains emerge. Example: Bitcoin and Bitcoin Cash.

Why do forks happen?

• Disagreements in the community about future development
• Technical upgrades (e.g. improved scalability or speed)
• Regulatory changes or new functionalities

What does a fork mean for you as a user?

• A hard fork often results in new tokens, which you might receive automatically if you hold the original ones.
• You should check which version is supported by platforms like Floin.
• Not every fork succeeds — some may lead to volatility or technical issues.

Example: In 2017, a hard fork in Bitcoin led to the creation of a new cryptocurrency: Bitcoin Cash (BCH), with different rules and a larger block size.

Conclusion

Forks are a natural part of blockchain evolution. They allow for innovation and upgrades but also carry risks. As a crypto user, it's important to understand what happens during a fork — and how it might affect your assets.