What is Fork?
A change to a blockchain's rules; a soft fork is compatible, a hard fork splits the chain.
A fork happens when the software that validates a chain changes. A soft fork tightens rules and stays compatible; a hard fork changes them so much that nodes disagree and two chains can continue.
Hard forks have produced separate assets with their own markets. When a coin you hold forks, you have to track which chain the exchanges and wallets you use decided to call canonical.
Related terms
- Consensus mechanismBasics
The rule that decides which version of a chain's history is correct — proof of work or proof of stake.
- Wrapped assetBasics
A token that represents an asset from another chain, held by a custodian or a bridge contract.