What is a fork of cryptocurrency?

A fork refers to a divergence or split in the blockchain's protocol, resulting in two separate versions of the cryptocurrency. There are two main types of forks: soft forks and hard forks.

1. Soft Fork:
  - A soft fork is a backward-compatible upgrade to the crypto's protocol.
  - It involves tightening the rules of the blockchain, making previously valid blocks invalid.
  - Nodes that haven't upgraded can still accept new blocks, as they adhere to the old rules.
  - Soft forks are often implemented for protocol improvements and increased security.

2. Hard Fork:
  - A hard fork is a non-backward-compatible upgrade to the crypto's protocol.
  - It results in a split where the new version of the blockchain follows the updated rules, and the old version continues with the original rules.
  - Nodes that haven't upgraded may consider new blocks invalid, leading to a divergence in the blockchain.
  - Hard forks can be contentious and may lead to a split community if not all participants agree on the changes.

Forks can be planned upgrades to improve the protocol or emergency measures to address security issues. Notable examples include the creation of Bitcoin Forks like: Bitcoin Cash (BCH) through a hard fork in 2017 and Bitcoin SV (BSV) as a result of another fork later the same year. It's important to note that not all forks result in the creation of a new cryptocurrency; some are routine protocol upgrades without creating a separate coin.

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