A network fork in cryptocurrency occurs when a blockchain splits into two separate paths. This can happen when there is a disagreement among the network’s participants about a proposed change to the protocol.
When a network fork occurs, some users may continue following the original blockchain, while others switch to the new path. This can result in the creation of two different versions of the cryptocurrency, each with its own set of rules and features.
Network forks can be classified as hard forks or soft forks. A hard fork is a permanent split in the blockchain, while a soft fork is a temporary divergence that is eventually resolved as consensus is reached.
Network forks can cause confusion and uncertainty in the cryptocurrency community, as users may be unsure which version of the blockchain to follow. It can also lead to issues such as double-spending and reduced security, as the network’s computing power is split between the two paths.
