Fork (Blockchain) Definition
In the world of blockchain and cryptocurrency, a ‘Fork’ refers to a change or divergence in the protocol of a blockchain network. This event generates an alternate version of the blockchain, leaving it to diverge from the original path.
Fork (Blockchain) Key Points
- Fork is a change in the protocol of a blockchain.
- It can result in an alternate version of the blockchain.
- There are two types of forks: Hard Fork and Soft Fork.
- A hard fork is a permanent divergence from the previous version of a Blockchain.
- A soft fork is a temporary divergence and a backward-compatible method of upgrading a blockchain.
- Both types impact the performance and operations of the respective blockchain network.
What is a Fork?
A ‘Fork’, in blockchain context, is when the existing protocol of a blockchain is modified, leading to a split in the blockchain. This can occur deliberately, for upgrading the system or accidentally, when nodes do not agree on a transaction’s validity.
Why Fork happens?
A Fork usually occurs when new governance rules are insinuated into the blockchain code. It also happens when diverging opinions exist within the network participants regarding transaction history or blockchain rules. This results in a split in blockchain direction.
Where does Fork occur?
A fork takes place within the blockchain network, either at a predetermined block number or after a specific event. This event is most commonly a disagreement within the network about the validated blocks or a necessary upgrade.
When does a Fork occur?
A fork can occur at any time. It generally occurs when network participants feel that changes to the system are needed. It can also occur when there is a disagreement about a specific transaction or event within the network, leading to a split into two paths.
How does a Fork work?
A fork is initiated when changes in the consensus rules are inserted into the blockchain’s code. These changes are disseminated to all nodes in the network. If the alterations are not backward compatible, a hard fork occurs, creating a whole new chain and token. Conversely, if the changes are backward-compatible, a soft fork happens, where only some nodes follow the new rules, while others keep operating under the old ones. Still, both types of chains share the same history up until the fork occurred.
Types of Fork
There are two main types of forks; Hard Fork and Soft Fork. A Hard Fork is a change in protocol that is not compatible with the previous system, resulting in a permanent split of the chain. This gives birth to a new token and a separate blockchain entity. On the other hand, a Soft Fork is compatible with the old protocol. Some nodes can operate on the new rules while others stay on the old rules. However, it’s only a temporary split as those operating on the old rules will eventually have to upgrade to adhere to the changes in the longer run.
