Fork (Blockchain) Definition
A fork in the context of blockchain technology refers to a situation where a blockchain splits into two separate chains. Forks generally happen in the crypto world when new ‘governance rules’ are built into the blockchain’s code. They can be classified into two types: hard forks and soft forks. A hard fork is a permanent divergence from the previous version of the blockchain, and nodes running previous versions will no longer be accepted by the newest version. A soft fork, on the other hand, is a change to the software protocol where only previously valid blocks/transactions are made invalid.
Fork (Blockchain) Key Points
- Forks are changes in the protocol of a blockchain network.
- They can be classified into hard forks and soft forks.
- Hard forks create a new version of the blockchain, rejecting all previous versions.
- Soft forks only make previously valid transactions invalid, older versions of the software can still operate and validate new transactions.
- Forks can be planned or can be a result of a disagreement in the community.
What is a Fork (Blockchain)?
A fork in blockchain is a radical change to the network’s protocol that makes previously invalid blocks and transactions valid, or vice-versa. It requires all nodes or users to upgrade to the latest version of the protocol software. It can occur in any crypto-technology platform- not only Bitcoin.
Why does a Fork (Blockchain) occur?
Forks occur when the community or a group of developers decide that changes must be made to a blockchain’s programming. This could be due to a need for new features, to reverse transactions, or to create new coins. Sometimes, it can also be a result of a disagreement in the community, leading to a split into two separate chains, each following a different set of rules.
When does a Fork (Blockchain) happen?
A fork happens when a change in the blockchain’s protocol is implemented. This could be scheduled (as in the case of Bitcoin, which schedules a fork every six months) or could be triggered by a pressing need for change in the system.
Where does a Fork (Blockchain) take place?
A fork takes place in the blockchain network. It affects all the participants in the network as they need to upgrade to the latest version of the protocol software to continue validating new transactions.
How does a Fork (Blockchain) work?
When a fork is introduced, the participants in the network (nodes) have to decide whether to update their software to the new version or to continue running the old one. If the majority decides to update, then the old version will be abandoned, and the new one will become the norm. If there is no consensus, then the blockchain may split into two separate chains, each following a different set of rules. This is known as a hard fork. In the case of a soft fork, only the new transactions would be affected, and the old ones would continue to be valid.
