Hard Forks

A hard fork is a significant change to a blockchain’s protocol that makes previously invalid transactions valid, creating a new version of the blockchain that diverges from the old one. This process occurs when the community or developers decide to upgrade or modify the rules—often to improve features or fix issues—and not everyone may agree. As a result, the blockchain splits into two separate chains: one following the old rules and one with the new updates. Holders of the affected cryptocurrency typically receive an equivalent amount on both chains, leading to coexistence of different versions of the same blockchain.