What is a Fork? Hard Fork & Soft Fork Guide
A fork is when existing blockchain networks that cryptocurrencies are connected to split into separate copies. A fork is not a complete separation but rather copying the same database to create a new blockchain network.
A fork can sometimes be done to fix or improve a bug in the system. In some cases, the new blockchain system established by separating from the blockchain network can issue its own currency/token.
A fork occurred to fix some issues (speed, security, etc.) in the Bitcoin cryptocurrency, and a new cryptocurrency Bitcoin Cash emerged.
A fork can happen for many different reasons. It can occur due to reasons such as the existing blockchain network's inability to meet demands or disagreements between developers. In this case, as a result of the fork, two new blockchain networks and two different cryptocurrencies emerge.
Which of the cryptocurrencies that emerge as a result of the fork will stand out is determined by the ecosystem, consisting of exchanges, cryptocurrency users, miners, and the market.
The fork process is done in two different ways: "Hard Fork" and "Soft Fork".
What is a Hard Fork?
A Hard Fork refers to a sharp division made on the blockchain network. A new blockchain network is built as an alternative to the existing blockchain network. This process is done to close important security vulnerabilities in the old network and add new features.
Users must switch to the new network, and users remaining on the old network need to adapt to the new network with an update.
What is a Soft Fork?
A Soft Fork is the name given to networks created as new alternatives in the blockchain network. It allows transitioning to the new network while the chain in the old network continues to exist. It is up to the miners and users in the old network whether to update or not.
It is done by developers who believe in the necessity of changing some technical features in the existing network.
The important thing in the Soft Fork process is that miners and users mostly accept this new network. With the majority's acceptance, the Soft Fork can succeed.