Hard Forks: Definition and Examples

A hard fork is a type of blockchain fork that involves a permanent divergence from the existing blockchain.

Examples

• Bitcoin hard fork (2017) resulted in the creation of a new cryptocurrency, Bitcoin Cash.
• Ethereum hard fork (2016) was implemented to restore the stolen funds to their rightful owners.

Hard forks occur when a new rule is introduced into the blockchain that is incompatible with the old rules. This results in a split in the blockchain, with one part following the old rules and the other following the new rules.

Hard forks can be controversial as they can result in a split in the community and a loss of consensus. However, they can also be important for the future of a cryptocurrency as they allow for changes to be made to the blockchain that can improve its functionality and security.

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