What is a crypto fork?

What Is a Crypto Fork?

A fork is a change to a blockchain's rules that can create a split in the network. When nodes disagree on the rules, the chain can divide into two: one following the old rules, one the new. Your existing coins may exist on both chains until one chain is abandoned or one version of the coin loses value.

Hard Fork vs Soft Fork

A hard fork introduces new rules that are not backward compatible. Old software will not accept new blocks. So the community must upgrade or split (e.g. Bitcoin and Bitcoin Cash). A soft fork tightens rules in a way old nodes can still accept (e.g. they see new blocks as valid). Soft forks do not usually create two coins.

What Happens to Your Coins?

In a hard fork, if you held coins before the fork, you often have the same amount on both chains. Exchanges may credit the new coin or not support it. Never send pre-fork coins to a new-chain address until you understand which chain you are on. Check exchange and wallet support before moving funds.