Ever wondered where all those different versions of Bitcoin came from? Or maybe you’ve come across the term “fork” in a discussion about crypto and wondered what that could possibly mean in the context of blockchain. If so, you’re in luck; below we’re going to take a look at what exactly a hard fork and soft fork are in the context of blockchain, how they work, why they’re useful, and why you should know more about them.
Soft Fork vs Hard Fork in Crypto (ETH Classic, Litecoin, BTC Cash…)
Below, we’ll explain exactly what a hard fork is and why it’s a particularly useful tool for a blockchain that wants to undo a malicious hack or improve its functionality. We’ll also explain in which cases both options lend themselves to use.
A fork is a divergence in the basic protocols that validate blocks on a blockchain. As you may know, each block in the blockchain is a unit of memory that contains a record of transactions that have been made on the blockchain.
The entire blockchain together forms an immutable transaction history of the entire blockchain and forms the foundation upon which cryptocurrencies, smart contracts, and other emerging blockchain-based technologies are created: immutability without trust.
