Network Forking
Network forking occurs when a blockchain splits into two distinct versions, often due to disagreements on protocol upgrades or conflicting block production. A hard fork creates a permanent divergence, requiring all nodes to upgrade to the new rules to participate in the updated chain.
A soft fork is a backward-compatible upgrade where only a majority of nodes need to upgrade to enforce the new rules. In adversarial scenarios, forking can be used to attempt double-spending or to bypass consensus rules.
Understanding forking is essential for developers and users because it dictates how network upgrades occur and how value is preserved during transitions. It is a natural outcome of the decentralized nature of blockchains where no single entity has absolute control.