Blockchain forking divides a blockchain into two, either accidentally or through intentional rule changes. Forks can be temporary or simultaneous, introducing new technical rules. Smart contracts fall into two categories: soft forks, where all parties agree on rule changes, and hard forks, arising from disagreements. Soft forks are like system patches, while hard forks create separate chains with different rules. Forks can lead to orphan blocks when miners create valid blocks simultaneously, and uncle blocks in Ethereum. Soft forks maintain backward compatibility, unlike hard forks. The blockchain community decides on upgrades through Bitcoin Improvement Proposals. Soft forks like Segregated Witness and Taproot enhance scalability and privacy. Hard forks, like Bitcoin Cash and Bitcoin SV, create new coins. Hard forks can distort tokenomics and ecosystem fragmentation. Despite challenges, dominant chains like Bitcoin remain relevant. Forks can resolve ethical dilemmas, like the DAO Hack in Ethereum, leading to the creation of Ethereum and Ethereum Classic blockchains. Read more AI-generated news on: https://app.chaingpt.org/news