Hardfork in cryptocurrency is often happening. What is hard fork? Here the short explanation about it.
A hard fork in cryptocurrency refers to a radical change to the protocol of a blockchain network that makes previously invalid blocks and transactions valid (or vice-versa). This type of change typically results in a permanent divergence from the previous version of the blockchain, often leading to the creation of a new, separate chain. Here are the key aspects of a hard fork:
1. **Protocol Change**: A hard fork involves updates or changes to the blockchain's rules. These changes are not backward-compatible, meaning that nodes (computers that validate and relay transactions) that do not upgrade to the new protocol will not be able to interact with the new network.
2. **Chain Split**: When a hard fork occurs, the blockchain splits into two separate chains. One chain follows the old protocol, and the other follows the new protocol. Both chains share the same transaction history up to the point of the fork, but they diverge thereafter.
3. **Creation of New Cryptocurrency**: Often, a hard fork results in the creation of a new cryptocurrency. For example, Bitcoin Cash (BCH) was created from a hard fork of Bitcoin (BTC) in 2017 due to disagreements over the block size limit.