What is a Hard Fork
A hard fork, represents a significant software update implemented by a blockchain or cryptocurrency’s network nodes. Unlike soft forks, which maintain backward compatibility, hard forks result in a permanent split of the blockchain into two separate networks that operate independently. Each network adheres to its own set of rules and protocols, leading to parallel chains.
When a hard fork occurs, nodes running the upgraded software discontinue the use of the previous version, leading to compatibility issues. Miners are then faced with a choice: adopt the new version with its revised rules or persist with the outdated version.
In November 2020, both Ethereum and Bitcoin Cash experienced hard forks, causing divisions within their respective communities. In the case of Bitcoin Cash, the hard fork gave rise to a new chain known as Bitcoin Cash Node (BCHN), which has since gained prominence as the official Bitcoin Cash due to its dominant mining power.
Understanding Blockchain Protocols
Every blockchain operates under a specific set of rules, known as a protocol, which governs the behavior of network participants. These rules encompass various aspects such as mining, staking, transaction validation, and node interactions. Ensuring consistency and integrity across the network.
Reasons Behind Hard Forks
The dynamic nature of the crypto industry, characterized by rapid technological advancements, often necessitates software updates. Hard forks may occur to introduce new functionalities, enhance competitiveness, or achieve collaboration with other blockchains. However, disagreements among community developers regarding proposed changes can lead to root differences, culminating in two different versions of the cryptocurrency.
A notable example of a hard fork is the 2017 split that resulted in Bitcoin Cash. Amidst a longstanding community dispute, Bitcoin Cash miners adopted a protocol version that increased the block size from 1MB to 8MB. Logically, Bitcoin and Bitcoin Cash evolved into distinct blockchains, each catering to unique communities with distinct goals and principles.
