Understanding Blockchain Forks
A fork is a branching of the blockchain due to a change in consensus rules, often creating two parallel chains. It improves security, speed, or functionality, but can divide the community.
Soft Fork vs. Hard Fork:
Soft fork: Backward compatible; the new version validates the old rules. No permanent split if the majority adopts it.
Hard fork: Not backward compatible; splits into two separate chains.
Example: Ethereum/Ethereum Classic. Examples: Bitcoin Cash (hard fork of BTC for more blocks), Litecoin (fork of the source code).
Nodes choose the dominant chain by consensus. Master forks to trade smart!.
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