#CryptoDictionary. What is fork?

Cryptocurrencies like Bitcoin and Ethereum are powered on decentralized open-source software called a blockchain. A fork happens whenever someone makes a change to the blockchain’s protocol, or basic set of rules.

That is, a fork is the division of a cryptocurrency blockchain into two branches. In other words, it is a change in the source code of the cryptocurrency.

There are 2 types of forks:

Soft fork – separation is compatible with old software. Soft forks are used to bring new features or make a cryptocurrency more secure.

Hard fork – the code changes so much the new version is no longer backward-compatible with earlier blocks. The blockchain is divided into two parts: the original blockchain and the new version. This creates a whole new cryptocurrency, such as Bitcoin Cash and Bitcoin Gold, which evolved from the original Bitcoin blockchain. Ethereum, the second largest cryptocurrency, is also a hard fork.

Most new cryptocurrencies are “split” from known promoted cryptocurrencies. The goals are different: some want to improve the cryptocurrency infrastructure, speed up transactions, etc, some just want to get rich.