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Fork (Blockchain)

Give me the basics

A fork in the blockchain refers to the creation of a new branch of a blockchain network that shares a common history with the original. Essentially, a fork can occur when multiple participants in a blockchain network decide to pursue different technological goals, resulting in the establishment of a separate blockchain network. This can lead to the creation of new cryptocurrencies or an upgrade to the original cryptocurrency. The severity of the fork can vary from a temporary soft fork to a permanent hard fork.

In-depth explanation

Blockchain technology has revolutionized the way we think about transactions, thanks to its immutable, decentralized and transparent properties. However, the blockchain is not a static technology, and constantly evolves to address new technological needs. As a result, forks are a regular occurrence in blockchain technology that users, investors, and developers must understand.

What is Forking in Blockchain Technology?

In blockchain technology, forking describes the act of creating a new branch of the blockchain network. It happens when members of a blockchain network disagree on a proposed change, resulting in the creation of a new blockchain network. The new network shares the entire transaction history of the original blockchain network up until the point of divergence.

A blockchain fork can either be a soft fork, where the new blockchain maintains compatibility with the original, or a hard fork, where the new blockchain is incompatible with the original. Soft forks act as temporary diversions, while hard forks can lead to the creation of new cryptocurrencies.

How Does Forking Work in Blockchain Technology?

Forking works by creating a new blockchain block that carries a new set of transaction rules. To execute the fork, a large enough majority of network users must accept the new rules. Once enough users switch to the new protocol, the forked blockchain advances alongside the original blockchain, changing the blockchain landscape.

Once a hard fork occurs, those tokens previously held on the parent blockchain network automatically transfer onto the newly created blockchain. This simplifies decentralization and builds confidence amongst cryptocurrency investors that the new blockchain network is secure and decentralized.

Why Forking Occurs in Blockchain Technology

The primary reason why forking occurs in blockchain technology is due to differences in technical and ideological vision. For instance, if blockchain participants disagree on the prioritization of updating the protocol, or handling any unforeseen network issues, forking is likely to happen.

Additionally, forks can also occur due to a desire to create new and innovative cryptocurrencies. The original Bitcoin forked, and several new cryptocurrencies were born, including Bitcoin Cash, Litecoin, and Bitcoin Gold.


Forking is a fundamental component of blockchain technology that occurs when members of a blockchain network seek to make changes to the existing transaction protocol. Forking can be a contentious process and may result in a temporary or permanent split in the blockchain network. While forking can lead to the creation of new, innovative cryptocurrencies, it is essential that investors and traders understand the risks associated with a hard fork and how they may impact the cryptocurrency markets.