What is a Fork?
In the world of blockchain technology, a hard fork (or hardfork) is a significant change to a network’s protocol that alters the validity of previously made blocks and transactions. This could mean that blocks and transactions that were previously considered invalid are now accepted, or vice versa.
To implement a hard fork, all nodes or users on the network must upgrade to the latest version of the protocol software. Hard forks can be initiated by developers or members of a cryptocurrency community who are dissatisfied with the current functionalities of the blockchain.
They can also be used to raise funds for new projects or cryptocurrency offerings. A hard fork is different from a soft fork, where a change is made to the protocol that still allows older versions to remain valid. To understand a hard fork, it is important to know that when nodes on a blockchain network upgrade to the latest version, they no longer accept the older version, resulting in a permanent split from the previous version of the blockchain.
When a new rule is added to the code, it creates a fork in the blockchain, with one path following the new blockchain and the other continuing along the old path. Eventually, users on the old chain will realize that their version is outdated and upgrade to the latest version.
Hard forks can occur on any cryptocurrency platform, not just Bitcoin. This is because all blockchains work similarly, with miners setting the rules that move the network. To change these rules, a fork is needed to indicate a deviation from the protocol. Developers then update all software to reflect the new rules.
The forking process has led to the creation of various digital currencies, such as Bitcoin Cash and Bitcoin Gold. For the average cryptocurrency investor, it can be challenging to differentiate between these cryptocurrencies and understand their timelines. A history of the most significant Bitcoin hard forks can help clarify this confusion.
