Fork in cryptocurrency has a general meaning of dividing or introducing an updated version of an existing cryptocurrency. When inventors realize that an existing cryptocurrency falls short of a particular function, a similar but upgraded version is introduced.
Perhaps the most well-known fork is Bitcoin Cash. The major improvement that was suggested for Bitcoin Cash was to increase the block size from 1MB to 8MB. This was in order to tackle increasing scalability issues.
This may seem like a good idea but it wasn’t without its downsides. The biggest being that this change essentially priced out smaller miners, meaning that only those with huge mining farms would be able to mine efficiently.
Forks are categorized into two; Hard folk and Soft Folk. Hard fork has been explained to be a permanent diversion from an existing Blockchain with the nodes of the new Blockchain not interacting with the transactions of the old one.
Soft Node is quite different. Transactions of the non upgraded nodes are recognized by the new upgraded ones; however, when the non upgraded node mines blocks continuously, the new nodes will reject them.
In this case, enough hash power is needed to make it succeed. It is believed that the existence of a fork makes the future of cryptocurrency very bright. Forks are an absolutely vital part of what makes cryptocurrencies able to evolve as fast as they do. Forks allow for fresh ideas that can help make a crypto more viable to use on a daily basis, along with other features such as security and privacy. It may be a tumultuous time in many communities but forks bring the best out of what cryptocurrencies have to offer.