Network Fork

A network fork occurs when a blockchain network splits into two separate paths, usually due to disagreements on protocol rules or software upgrades. A hard fork creates a permanent divergence, where nodes must upgrade to the new version to continue participating.

A soft fork is a backward-compatible change that does not require all nodes to upgrade. Forks can be contentious, leading to the creation of new assets or the division of the community.

They are a fundamental aspect of decentralized governance, reflecting the power of participants to influence the evolution of the protocol.