Fork (Software)
A fork, in software development, is a process whereby a program or project splits into two distinct but similar versions. It can occur for a variety of reasons including disagreements between developers as to how the code should be written, or even just to create new features and functions that wouldn’t have been possible before.
In terms of cryptocurrency, forks are used when there is disagreement within the community about certain aspects of the blockchain protocol. This could include things such as changes to consensus rules (i.e., what transactions are valid), block size limits for miners, transaction fees paid by users etc. When this occurs – usually after much debate – one group will decide to “fork” from the existing version and develop their own separate version with different rulesets and parameters in place.
For example, Bitcoin Cash was created following a hard fork of Bitcoin on August 1st 2017 due primarily to disagreements over block sizes and associated processing times/fees which were becoming increasingly expensive and slow on the original Bitcoin network.
Most notably however; because all users who held Bitcoins prior to this hard fork received an equal number of coins in both networks upon activation; it has become commonplace for people who hold cryptocurrencies during yet-to-be announced forks (or “airdrops”) also receive additional tokens as part of these events making them extremely popular among traders looking for free money!
When considering whether or not you wish to participate in any upcoming forks please make sure you understand what exactly is happening first so that you know where your funds are going at all times!
