CandleFocus What Are Crypto Forks?
2024-10-15
Author: Content Editor
This article discusses the role of forks in the blockchain space. Forks occur when a blockchain network splits into two versions to create a new independent blockchain. There are two types of forks: hard forks and soft forks. Hard forks involve substantial changes that create a new blockchain, while soft forks are backward-compatible modifications that do not split the blockchain. Forks can happen for various reasons such as protocol upgrades, addressing security vulnerabilities, or scaling issues. They allow developers to implement significant changes and improvements to the network. Hard forks can create new coins and impact users' wallets, while soft forks have less impact. Market reactions to forks vary, with successful forks boosting prices and unsuccessful or contentious forks leading to losing confidence. Users should stay informed, check wallet compatibility, and address security concerns during forks.
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