2025-08-30
In the decentralized network of blockchain, all nodes rely on the consensus mechanism to maintain the stable operation of the system. However, when some nodes disagree on protocol rules, software upgrades, or transaction processing methods, it will trigger a special phenomenon - blockchain forks. From the birth of Bitcoin Cash (BCH) to the formation of Ethereum Classic (ETC) through the hard fork of Ethereum, forks are like the "referral response" of the blockchain world, which has a profound impact on technological development and ecological landscape. So, what exactly is a blockchain fork? How does it change the development trajectory of blockchain?
Blockchain bifurcation is essentially the phenomenon of two or more different blockchains in a blockchain network due to consensus differences. In a normal blockchain system, nodes verify and add blocks based on the same protocol rules. But when the protocol is upgraded, community disagreements or technical failures occur, some nodes will adopt new rules, while others will follow the old rules, causing the blockchain network to split and form different branches. Each branch follows its own rules to continue the block, like a branch growing out of the trunk, which is the core feature of blockchain bifurcation.
According to the degree of divergence and compatibility, blockchain forks are mainly divided into hard forks and soft forks. A hard fork is a split that does not have backward compatibility, and the old and new nodes cannot work on the same chain. Blocks generated under the new rules cannot be recognized by the old nodes, and the old nodes cannot participate in the consensus of the new chain, eventually forming two independent blockchains. For example, the Ethereum hard fork produces Ethereum Classic. A soft fork is an upgrade of backward compatibility, and the new rules are stricter. Blocks generated by old nodes can be accepted by new nodes, and the network remains unified in the end, such as the Segregated Witness (SegWit) upgrade of Bitcoin. In the digital asset trading service of HashKey Exchange , the dynamics of blockchain forks will be monitored in real time, and technical responses will be made in advance to ensure the safety of user assets.
The impact of blockchain forks on the ecosystem is two-sided. On the negative side, hard forks can easily lead to community fragmentation and market volatility, and investors need to be cautious about the risk of asset changes caused by forks; on the positive side, forks promote the innovation and iteration of blockchain technology, giving rise to new tokens and application scenarios. For example, Litecoin generated by bitcoin forks is optimized in terms of algorithm and block time; some enterprises and projects will also use forks to achieve system upgrades or create new blockchains. HashKey Exchange When evaluating and supporting blockchain projects, the history of forks and latent risks will be taken into account to screen better investment targets for users.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
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