Blockchain Fork
A blockchain fork is a split or change in a blockchain’s rules that can create two different versions of the network’s transaction history.
A blockchain fork happens when the software rules used by network participants change or when participants temporarily disagree on the valid version of the chain. Because blockchains rely on many computers reaching consensus, even a small rule difference can cause the network to separate into different paths. Some forks are temporary and resolve automatically when one chain becomes accepted as the main one. Others are planned upgrades that change how the network works.
Forks matter because they are a way for blockchains to fix bugs, add features, adjust security rules, or settle disagreements about the project’s direction. A soft fork is usually backward-compatible, meaning upgraded and non-upgraded nodes can still share one network under certain conditions. A hard fork is not backward-compatible and may create a separate blockchain if some users keep the old rules. For example, if a community disagrees about increasing block size, one group may adopt the change while another refuses, resulting in two networks with a shared history up to the split.
Other terms in Blockchain Fundamentals
Atomic Swap
A peer-to-peer crypto trade that lets two parties exchange different coins directly without relying on a centralized exchange or custodian.
Block (Blockchain)
A block is a bundled set of blockchain transactions and metadata that is added to the chain after the network accepts it as valid.
Blockchain
A blockchain is a shared digital ledger that records transactions in linked batches and is maintained by a network of computers.
Consensus Mechanism
A method a blockchain network uses to agree on valid transactions and the current state of the ledger without a central authority.