What Is a Hard Fork (Blockchain)? How Does a Hard Fork Occur?

What is a Hard Fork (Blockchain)?

A hard fork in a blockchain refers to a fundamental change in the software rules governing the network. This change is irreversible and requires all nodes on the network to upgrade to the new rules or risk being disconnected.

How Does a Hard Fork Occur?

A hard fork typically involves the following steps:

1. Proposal and Voting: A proposed change to the blockchain's software rules is introduced and voted on by the network participants (e.g., miners, validators).
2. Software Update: If the proposed change is approved, software developers will create a new version of the blockchain software that incorporates the changes.
3. Network Activation: A specific block height or date is set for the hard fork to be activated, after which all nodes must upgrade to the new software version.
4. Split: Nodes that upgrade to the new software version will continue to operate on the same blockchain, while nodes that do not upgrade will become incompatible with the network and operate on a different chain (a "fork").
5. Support and Consensus: The majority of network participants must upgrade to the new software version for the hard fork to be successful and achieve consensus.

Consequences of a Hard Fork:

• Chain Split: A hard fork can create a permanent split in the blockchain, creating two separate networks.
• Asset Distribution: Any tokens or assets held on the original chain will be duplicated on the new chain, potentially resulting in price volatility.
• Network Stability: Hard forks can be disruptive to network stability and security, asnodes need to coordinate and upgrade seamlessly.
• Adoption: The adoption rate of the hard fork will depend on factors such as the perceived value of the changes, support from the community, and the compatibility of applications and exchanges.