PNM CryptoTrade Glossary

Fork, Hard Fork, Soft Fork

PNM CryptoTrade Glossary

CryptoTrade Glossary
Fork

The general meaning of fork is to split or upgrade. In cryptocurrencies, the word “fork” is used when a change in the source code of the project is made in the blockchain network and a new version is created. The reason for creating forks is to provide solutions to technical problems, add new features or follow new rules.

Hard Fork

Hard Fork refers to a software update that is not compatible with older versions. All participants must upgrade to the new software to continue participating and validating new transactions. Those who have not updated will be disconnected from the network and will not be able to validate new transactions. Bitcoin Cache is a bitcoin hard fork.

Soft Fork

Soft Fork is an upgraded software that is compatible with older versions, and participants who have not been upgraded to the new software can still participate in the validation and validation of transactions.

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