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What is a fork in Cryptocurrency?​

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In the context of Cryptocurrency, a fork refers to a change in the underlying protocol of a blockchain network. This change can result in two distinct types of forks:

Soft Fork:

• A soft fork is a backward-compatible upgrade. This means that the new rules are still compatible with the old ones, allowing old nodes to continue participating in the network. Nodes that haven't updated to the new software can still validate and confirm transactions, but they might be restricted from participating in the creation of new blocks if they don't follow the new rules. Soft forks are typically used for minor changes and upgrades to the blockchain protocol.

Hard Fork:

• A hard fork is a more significant change that is not backward-compatible. It results in a split of the blockchain into two separate chains, where one follows the old protocol and the other follows the new rules. This division creates two distinct cryptocurrencies if the community does not universally adopt the new protocol. Hard forks can occur for various reasons, such as addressing security vulnerabilities, adding new features, or diverging philosophies within the community. Notable examples of hard forks include Bitcoin Cash splitting from Bitcoin and Ethereum Classic splitting from Ethereum.

Forks are an essential aspect of the decentralized nature of cryptocurrencies, allowing communities to adapt and evolve the technology according to their needs and visions.

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