A fork is the division of cryptocurrencies into separate copies in existing blockchain networks to which they are connected. A fork is not a complete separation, but a copy of the same database and the creation of a new blockchain network.
Fork-lift operation can sometimes be done to correct or improve an error in the system. In some cases, the new blockchain system established by separating from the blockchain network may issue its own currency / token.
In order to correct some errors (speed, security, etc.) in the Bitcoin crypto currency, a fork was made and a new crypto currency Bitcoin Cash emerged.
Fork can occur for many different reasons. Fork may occur due to reasons such as the inability of the existing blockchain network to meet the demands, and the conflict between the developers. In this case, the fork results in two new blockchain networks and two different cryptocurrencies.
Which of the crypto currencies resulting from the fork will stand out is a situation determined by the exchanges, crypto money users, miners and the market that make up the ecosystem. Fork operation is done in two different ways as "Hard Fork" and "Soft Fork".
What is a Hard Fork?
Hard Fork refers to the sharp segment made on the blockchain network. A new blockchain network is built as an alternative to the existing blockchain network. This process is carried out to close important security gaps in the old network and add new features. Users must switch to the new network, and users who remain on the old network must adapt to the new network with the update.
What is a Soft Fork?
Soft Fork is the name given to networks created as a new alternative in the blockchain network. In addition to the continuation of the chain in the old network, it also enables the transition to the new network. Miners and users on the old network are up to their preference to update or not. It is made by developers who believe that some technical features in the existing network need to be changed. What is important in the Soft Fork operation is that the miners and users mostly accept this new network. With the acceptance of the majority, the Soft Fork made can be successful.
