Stay Informed About Blockchain Forks
- What are forks?: A fork happens when a blockchain network splits into two separate paths, often leading to the creation of a new cryptocurrency. There are two main types of forks:
- Hard Fork: This is a permanent divergence in the blockchain, requiring users to upgrade their software to the new version. A well-known example is Bitcoin Cash (BCH), which resulted from a hard fork of Bitcoin.
- Soft Fork: A temporary divergence, backward-compatible with the original blockchain. Bitcoin SegWit is an example of a soft fork aimed at improving transaction speed and block size.
- How to handle forks?: Forks can affect the price and future of a cryptocurrency. In some cases, holding the original cryptocurrency might entitle you to claim tokens from the new chain (as seen with Bitcoin and Bitcoin Cash). Be cautious and understand the potential risks and rewards before engaging with forked tokens.
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