A blockchain fork occurs when there is a divergence in the current path of a blockchain. This can happen due to disagreements among users or developers regarding proposed changes to the blockchain’s protocol.
There are two main types of blockchain forks – soft forks and hard forks. A soft fork is a temporary split where only one chain will remain valid. This means that all nodes will eventually upgrade to the latest version of the protocol.
On the other hand, a hard fork is a permanent split that creates two separate blockchains. This can result in the creation of a new cryptocurrency if the community decides to adopt the new chain.
In the case of a hard fork, users need to be careful not to send funds to the wrong blockchain as transactions on one chain will not be valid on the other. It is important for users to be aware of any proposed forks and understand the potential impacts on their holdings.
