Subscribe to Our Newsletter

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks

WHAT IS: Blockchain Fork

Behind every blockchain fork is a decision that splits a network, and sometimes, an entire community, in two.

David Adubiina profile image
by David Adubiina
WHAT IS: Blockchain Fork
Photo by Ewan Kennedy / Unsplash
💡
TL;DR - A blockchain fork occurs when a blockchain splits into two separate paths due to a change in the underlying protocol or rules, creating a divergence in the network’s transaction history, community direction, or even its currency, sometimes by design, other times through disagreement.

We’ve all had moments where we’ve had to make big, life-changing decisions, the kind that force you to pause, weigh your options, and wonder which path might change everything. Like choosing between going to college to study for 4 years or taking a 3-month online course. Or packing your bags and relocating for a fresh start.

Whatever the case, those choices feel like forks in the road. Moments where the future splits, and whichever direction you choose, there’s no going back. Well, the blockchain isn’t so different.

Behind the scenes, the people and code keeping these networks alive often face their own tough decisions. Sometimes it’s about fixing a bug. Other times, it’s about rethinking the entire direction of the project. And just like in real life, those decisions can reshape everything.

That brings us to the idea of a “fork” in blockchain.

WHAT IS: Blockchain Oracle
Learn the intricacies of how blockchain oracles bridge smart contracts with the real world.

What Is a Blockchain Fork?

a chain link fence
Photo by Shubham Dhage / Unsplash

A fork occurs when there’s a change in the blockchain’s protocol—the set of rules that decides how everything runs. Once that change is made, some people may stick with it, while others might decide to go their own way. From that point on, two separate blockchains exist, each with the same history up to the split, but different futures.

Sometimes it’s planned, like a scheduled upgrade. Other times, it’s chaotic, caused by arguments within the community. But either way, forks shake things up.

Why Do Forks Happen?

Forks don’t just happen out of nowhere. They usually come from one of two situations:

  • Protocol Changes
    Every blockchain runs on a strict set of rules—how blocks get added, how transactions get confirmed, and so on. If the developers decide those rules need to change (say, to make things faster or more secure), and not everyone agrees or updates in time, the result can be a split.
  • Community Drama (aka Disagreements)
    Blockchains are built on decentralization, which means no single person is in charge. That’s cool in theory, but when opinions clash hard, especially on big issues like scalability or security, it can lead to separate groups breaking off to create their own version of the chain. Think of it like a band breaking up over “creative differences.”

Types of Blockchain Forks

diagram
Photo by Shubham Dhage / Unsplash

There are two main types of forks, and the difference comes down to how disruptive they are:

  • Soft Fork
    A soft fork is like updating your phone to a new version of the OS—it’s still the same device, just with new rules or features. It’s backward-compatible, meaning older versions can still interact with the updated chain (to an extent). It’s kind of a gentle nudge forward.
  • Hard Fork
    A hard fork, on the other hand, is like moving from Android to iOS. It’s a full-on split, and the old and new versions are no longer compatible. Everyone has to pick a side. These forks often result in a new cryptocurrency entirely, like when Bitcoin Cash forked from Bitcoin over block size debates.

What Blockchain Forks Are Used For

a group of black computers
Photo by GuerrillaBuzz / Unsplash

Forks aren’t just for the sake of creating a divergence in blockchain; they actually serve real, practical purposes in the blockchain world. Here’s what they help with:

1. Upgrades and Improvements

Just like phone needs software updates, blockchains need upgrades too. Forks—especially soft forks—allow developers to introduce new features, fix bugs, or improve performance without tearing the whole system down.

Example: Bitcoin’s SegWit upgrade in 2017 (a soft fork) helped reduce transaction size and enabled the Lightning Network.

2. Fixing Security Flaws

If a major vulnerability is discovered, a fork can act like emergency surgery, cutting out the bad code and replacing it with safer logic. This is often time-sensitive and can be a matter of saving the entire network.

Ethereum’s DAO hack recovery was essentially this—a hard fork to reverse the damage.

3. Testing New Ideas

Not everyone agrees on how a blockchain should evolve. Forks let people experiment with different ideas without killing the original chain. It's like launching a spin-off product: same origin, new direction.

Litecoin did this by forking from Bitcoin and trying out faster block times.

4. Creating New Cryptocurrencies

Some forks are born with a clear goal: create a new coin with a different philosophy or model. Whether that’s lower fees, faster transactions, or a more scalable structure, forks allow entirely new ecosystems to branch off.

Think Bitcoin Cash, Bitcoin SV, Ethereum Classic, all came from parent chains.

What Happens to a Coin After a Fork?

If you held coins on the original blockchain before the fork, you might suddenly find yourself with coins on both versions. It’s like your wallet duplicated across two timelines.

For example, if you had 1 BTC before the Bitcoin Cash fork, you got 1 BCH automatically on the new chain. But this only happens if:

  • You had custody of your coins (like in a non-custodial wallet).
  • The exchange or wallet you used supports the fork.

It’s a nice perk sometimes, but also comes with risks, since not all forks are stable or secure.

Challenges and Downsides of Blockchain Forks

text
Photo by GuerrillaBuzz / Unsplash

For all the flexibility and freedom forks provide, they also come with real risks—technical, financial, and community-related.

1. Confusion for Users

After a fork, especially a hard one, users might not even realize which version of the chain they’re on, or whether their wallet supports the new chain. This can lead to lost funds or bad transactions.

"I had 2 ETH, now there's ETH and ETC? Which one is mine?" ← this happens.

2. Dilution of Value

When a new forked coin is created, it can pull attention and resources away from the original network. Sometimes, that weakens both chains, especially if neither gains critical adoption.

Bitcoin SV (from BCH) never really gained mainstream traction.

3. Reorgs and Replay Attacks

In some cases, if security isn’t handled well, transactions from one chain can be “replayed” on another, causing chaos. It’s a rare but dangerous risk with poorly coordinated hard forks.

4. Splintered Communities

The biggest issue isn’t always technical but human. Forks often divide communities, causing toxic debates, tribalism, and a lack of unified direction. That can stunt innovation or turn off new developers and users.

Ethereum vs. Ethereum Classic still triggers debates about ethics in blockchain.
WHAT IS: Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine is the engine that powers the entire Ethereum blockchain.

Conclusion

Forks are like pressure valves in blockchain. Sometimes they’re necessary. Sometimes they’re messy. But for what it's worth, they’re a tool, a way for decentralized communities to express disagreement, adapt to new challenges, or explore bold new paths.

If used wisely, they can push innovation forward. And if used recklessly? They can fragment an entire ecosystem.

David Adubiina profile image
by David Adubiina

Subscribe to Techloy.com

Get the latest information about companies, products, careers, and funding in the technology industry across emerging markets globally.

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks

Read More