Blockchain & Cryptocurrency Glossary

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Fork

Pronunciation
[fawrk]
Analogy
A blockchain fork is like a fork in a road where travelers must choose which path to follow. Sometimes the paths quickly merge back together (temporary fork), but other times they lead to completely different destinations (permanent fork), creating two separate communities and networks.
Definition
A split in a blockchain network that creates two separate paths forward, either temporarily or permanently. Forks occur when changes to the blockchain protocol create incompatibilities between different versions, or when the network temporarily produces competing valid blocks.
Key Points Intro
Forks represent pivotal moments of change and decision in blockchain evolution.
Key Points

Can be temporary (reorganizations) or permanent (protocol changes).

May be planned and intentional or occur accidentally.

Often reflect governance decisions or technical upgrades.

Create distinct versions of a blockchain with separate histories after the fork point.

Example
In 2017, disagreements over how to scale Bitcoin led to a hard fork that created Bitcoin Cash, with larger block sizes allowing more transactions per block but requiring more resources to run full nodes, while the original Bitcoin chain maintained smaller blocks.
Technical Deep Dive
Forks typically occur in two contexts: (1) as part of normal operation when two miners find valid blocks nearly simultaneously, creating a temporary fork until subsequent blocks determine the longer chain, or (2) when protocol rules change, creating a divergence point where nodes following different rules no longer accept the same blocks as valid. The latter case can result in either hard forks (where new rules allow previously invalid blocks) or soft forks (where new rules tighten validation requirements). Blockchain designers typically prefer soft forks when possible since they maintain backward compatibility.
Caveat
While some planned forks represent positive protocol improvements, contentious forks can fragment communities, dilute developer resources, and create market confusion. The ability to fork is both a feature of blockchain's decentralized governance and a challenge for ecosystem stability.

Fork - Related Articles

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