There are times when the development team for a cryptocurrency starts to have diverging opinions on what is the best long term vision for the project. If the differences between the two groups cannot be reconciled, one group will separate from the other, and implement changes to the software code that they feel will ultimately strengthen it.
In layman's terms, one can think of a hard fork as a backwards-incompatible software upgrade. The issue is that not everyone wants to perform the upgrade, since some feel the upgraded code is inferior to the existing code.
As a result, the blockchain splits, creating two separate networks: one with the old rules, and one with the new rules, - Binance Academy
A fellow author put it eloquently this way:
...a hard fork creates two separate networks by splitting an existing one. Two ledgers with the same past and different futures, - @MoreGainStrategies
After the hard fork takes place, owners of the pre-forked cryptocurrency are eligible to collect the new cryptocurrency that resulted on a 1:1 basis. The pre-forked cryptocurrency would need to be placed into a crypto wallet that supports the hard fork.
Thanks for reading, and stay safe!
If you would like to support my work, please hit like 👍 and subscribe! 😊
Last modified November 6, 2020
Follow me on Twitter: @CryptoWordsmith
Lead image by loufre (modified by the author) from Pixabay
It's the perfect time to start earning free crypto while you learn about it!
If you want to earn free BCH, read.cash is always looking for new members and for aspiring authors. Previous writing experience is not required! I invite you to create an account using my referral link by clicking here.
I'm earning up to 8.6% annual interest compounded monthly on my crypto deposits at BlockFi, and you can too. When you sign up for a free account using my referral link by clicking here, we can both receive a bonus!
BlockFi hack: You can even choose which cryptocurrency to receive your interest payments in!
Related reading: How I will earn $20 in free Bitcoin from BlockFi
You can also earn free crypto such as EOS or XLM by watching Coinbase Earn videos! Register for your free account using my referral link here, and we can both receive a bonus!
Thanks for your support!
Resources:
There is so much to learn about cryptocurrency, this made me realized that I.m still in my kindergarten level I guess :)