A fork in cryptocurrency refers to a change in the rules of the blockchain that results in the creation of a new version of the cryptocurrency. There are two main types of forks: hard forks and soft forks.
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Hard Fork: A hard fork occurs when a blockchain splits into two separate chains due to a change in the protocol that is not compatible with the existing network. This results in the creation of a new cryptocurrency, separate from the original one. Holders of the original cryptocurrency typically receive an equal amount of the new cryptocurrency.
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Soft Fork: A soft fork is a backward-compatible change to the protocol, meaning that nodes that have not upgraded can still operate on the network. In a soft fork, the new rules are more restrictive than the old rules, and the majority of the network agrees to adopt the upgrade.
Forks can be contentious or non-contentious, depending on whether there is consensus among the community regarding the proposed changes. Hard forks can be used to implement significant upgrades or changes to a cryptocurrency, while soft forks are typically used for more minor changes.
