A chain split, also known as a fork, is a situation that occurs when a blockchain network becomes divided into two separate chains. This can happen when there is a disagreement within the network about the rules that should govern the blockchain, or when there is a technical issue that causes the chain to become divided.
There are two main types of chain splits: hard forks and soft forks. A hard fork is a permanent split in the blockchain, where the new chain is incompatible with the old chain. This means that users who want to continue using the new chain will have to upgrade their software and switch to the new chain, while users who want to stick with the old chain will have to continue using the old software. A soft fork, on the other hand, is a temporary split in the blockchain that is eventually resolved. In a soft fork, the new chain is backward compatible with the old chain, which means that users who switch to the new chain will still be able to participate in the old chain if they choose to do so.
Chain splits can have significant consequences for the users of the blockchain, as they may result in the creation of two separate versions of the blockchain with different rules and potentially different value. It is important for users to be aware of the risks associated with chain splits and to carefully consider the implications before deciding whether to switch to the new chain or continue using the old chain.
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