When it comes to discussing blockchain, then you will come across several terminologies including circulating supply, nodes, etc.
But forking is one such term that you need to understand. And then you need to understand the difference between soft fork and hard fork.
What Does Forking Means?
Forking can be defined as that situation when there is a need for technical modification to a particular crypto project’s code.
These modifications apply to either project’s backend with no big service changes. Or there will be another way which is fundamental changes in the reach of the real project.
Forking leads to branching in blockchain technology - be it for a short time or forever. Simply saying forking happens with the split in the digital ledger.
The change happens either through the consensus algorithm or other changes in the software. Forking is divided into two parts - Hard fork and soft work.
A hard fork can be explained as the persistent division from the old version of blockchain. Here old functioning nodes become unacceptable or say replaced by newer ones.
Usually, the possibility of a hard fork takes place when there is major support from the mining group giving thumbs up for the fork up-gradation.
BCH is one good example to mention.
Soft fork in comparison to hard fork is backward incompatible. This means that new forks will indeed adhere to new rules but will also acknowledge the old rules.
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