Forks: The Evolution of Blockchain – from Updates to Splits! 🌳⚙️
In the world of cryptocurrencies, you often hear about "forks". These are changes in the blockchain protocol that can lead to the creation of a new version or even a separate chain:
Soft Fork: This is an update that is backward compatible with previous versions. Old nodes that have not updated their software will still recognize new blocks as valid (although they will not be able to fully utilize the new features). Example: the SegWit update in Bitcoin.
Hard Fork: This is a fundamental change in the protocol that is incompatible with previous versions. If not all participants in the network update, the blockchain may split into two separate chains, each with its own history and assets. Example: the split of Ethereum into ETH and ETC.
Forks are a natural part of the development and adaptation of blockchain technologies, reflecting the democratic decision-making process in decentralized networks.