What does the term 'blockchain fork' refer to in cryptocurrencies? 🔊
The term blockchain fork refers to a divergence in a blockchain network that results in two separate versions of the distributed ledger. Forks can occur as a consequence of changes in protocol or disagreements within the community regarding the future direction of the blockchain. A fork can be soft (backward compatible) or hard (not backward compatible), impacting the value and utility of cryptocurrencies. Understanding forks is essential for participants in the blockchain ecosystem to navigate potential risks and opportunities.
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