In the world of cryptocurrencies, forks refer to changes or updates to the blockchain protocol. There are two main types of forks: **Hard Fork** and **Soft Fork**. Here is the difference between them:

### 1. Hard Fork

- **Definition**: It is a radical change in the network protocol that requires all nodes to update to the new version.

- **Effect**: It creates two different currencies, as nodes that have not been updated will continue to work on the old version, while nodes that have been updated will use the new version.

- **Example**: Bitcoin and Bitcoin Cash were created by a hard fork.

### 2. Soft Fork

- **Definition**: It is an update that is compatible with the previous version, meaning that old nodes can continue to work without the need for an update.

- **Impact**: Does not create new coins, as all nodes remain compatible with the protocol.

- **Example**: Improvements like SegWit in the Bitcoin network are considered soft forks.

### Conclusion

- **Hard forks** require an update to all nodes and may result in the creation of two different coins.

- **Soft forks** are backward compatible and do not require an update to all nodes, which maintains the integrity of the network.

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