Description: Network forking, also known as ‘fork’, refers to a change in the protocol of a blockchain that creates a new version of the network. This process can be either soft (soft fork) or hard (hard fork). In a soft fork, the new rules are compatible with the old ones, allowing nodes that do not update their software to continue participating in the network. On the other hand, a hard fork involves a radical change in the protocol, creating a divergence that results in two separate blockchains that are not compatible with each other. Network forking is essential for the evolution of blockchain technologies, as it allows for the implementation of improvements, bug fixes, and adaptation to new market needs. Additionally, they can arise from disagreements within the developer or user community about the direction a project should take. Network forking not only affects the underlying technology but can also have economic and social implications, as it can lead to new cryptocurrencies and communities around them.
History: Network forking became popular with the emergence of Bitcoin in 2009. One of the first significant examples was the hard fork of Bitcoin in 2017, which led to the creation of Bitcoin Cash by a group that wanted to increase block size to improve scalability. Since then, there have been numerous forks in the cryptocurrency ecosystem, reflecting the diversity of opinions and needs within the community.
Uses: Network forks are primarily used to implement improvements in a blockchain protocol, fix bugs, or respond to disagreements within the community. They can also be a way to create new blockchain applications or cryptocurrencies, allowing developers and users to explore different visions and approaches to blockchain technology.
Examples: A notable example of network forking is Ethereum, which forked into Ethereum and Ethereum Classic in 2016 after The DAO hack. This fork was carried out to reverse fraudulent transactions and restore funds to investors. Another example is the Litecoin hard fork, which was conducted to introduce improvements in transaction speed.
