What is a Fork?
A fork describes a divergence in blockchain history or a change in protocol rules.
What does a fork mean?
In the context of blockchain, a fork is a term used to describe a divergence or a change in rules. Not every fork creates a new coin. Sometimes, because two valid blocks are found at the same time, two different chain tips exist for a short period. In other cases, participants adopt different software rules and diverge permanently.
In the software world, a fork is also used to mean creating a separate development branch from a project’s source code. Copying the code and splitting the history of a live blockchain are not the same event. It is necessary to distinguish which meaning is being used in a news report.
Example of temporary divergence
Imagine two Bitcoin miners unknowingly find a block at the same height. Nodes may follow the block they see first. As subsequent blocks arrive, the valid chain with the most cumulative work is preferred. The other branch is left out. During this time, some transactions may return to a pending state. This situation, caused by normal network latency, does not mean a new type of Bitcoin has been launched.
Hard fork and soft fork
Hard forks can include changes that are not compatible with old rules. Old software may reject the new blocks. If participants continue with different rules, two separate networks can form. Soft forks are a type of change that narrows the set of transactions or blocks considered valid, where old nodes can still accept new valid blocks. Old nodes may still not be fully enforcing the new rules.
When you see a fork announcement, check the update statements from your wallet or exchange. Do not connect your wallet to every site saying “claim your new coins.” In particular, exporting an old private key to another software can put existing assets at risk. A technical network split does not imply a secure distribution campaign.