Your one-stop destination for blockchain news in the Middle East
Blockchain_ Blockchain Fork - How it Works and Why it Matters

Blockchain: Blockchain Fork – How it Works and Why it Matters

Last Updated on February 24, 2024 by Hamza Khan

Cryptocurrencies are usually open source, which means the codes can be freely copied, edited, or reused. Sometimes a group of programmers come together to make a specific cryptocurrency better by implementing certain changes. So they take an existing cryptocurrency, edit the codes, and present a spin-off or newer version. When this occurs, a whole new blockchain is created with a shared history with the original chain until it decides to split off.

What is a Blockchain Fork?

A blockchain fork is a situation where a blockchain diverges into two potential paths forward. A famous example of a blockchain fork is the one between Bitcoin and Bitcoin Cash. Bitcoin Cash was developed on August 1, 2017, but split off the bitcoin blockchain due to scalability issues.

There are two main types of forks: a “soft fork” and a “hard fork.” A soft fork is a backward-compatible alteration to the blockchain protocol. This means that nodes running the old version of the software will still be able to process transactions and blocks created by nodes running the old version of the software. On the other hand, a hard fork is a change to the protocol that is not backward-compatible. When a hard fork occurs, the nodes running the old software version will no longer be able to participate in the network.

Why do Blockchain Forks Matter?

Blockchain forks are essential for a few reasons:

  • Upgrades and Improvements: A fork allows for implementing new features and improvements to the blockchain protocol. These upgrades can address existing issues, such as scalability, security, or privacy, and help ensure the network’s long-term sustainability.
  • Decentralization: A fork allows different groups of users to come to a consensus on the project’s future direction. It allows for diverse visions to be realized and implemented in parallel, which promotes decentralization and prevents any single group from having too much control over the network.
  • Innovation: A fork allows for experimentation and innovation within the blockchain space. New projects can be created, and new technologies can be tested, leading to the development of new use cases and applications for blockchain technology.
  • Competition: A fork can also be used to create competing versions of a blockchain project, which can lead to healthy competition and drive innovation. This can also help to ensure that a single entity or group of entities does not control the network.


A blockchain fork occurs when a blockchain splits into two separate chains. This can happen for several causes, such as a disagreement among developers about the project’s future direction or a change in the underlying protocol that is incompatible with the current version of the software. However, it is important to note that not all blockchain forks are created equal, and not all of them may be beneficial or successful. It’s essential for users to carefully evaluate the motivations and goals of any proposed fork before deciding to support or invest in it.

Related Posts