2025-08-30
In the world of blockchain, "fork" is a frequent and far-reaching concept. It may not only be the only way to upgrade the technology, but also cause community fragmentation and asset changes. From the birth of Bitcoin Cash (BCH) to the formation of Ethereum Classic (ETC) through the hard fork of Ethereum , how does fork change the development trajectory of blockchain? What is the operating mechanism and application significance behind it?
A blockchain fork is essentially a blockchain network that generates two or more different blockchains for some reason. In a decentralized blockchain system, all nodes need to reach a consensus on transaction records and block additions. When some nodes disagree on protocol rules, software versions or transaction processing methods, it may cause the blockchain network to split and form different branches. According to the degree of disagreement and subsequent processing methods, forks are mainly divided into soft forks and hard forks. Soft forks are backward compatibility, and old nodes can accept blocks generated by new rules; hard forks are incompatible. New and old nodes cannot work on the same chain, forming two independent blockchains.
A soft fork is usually a small optimization upgrade to the blockchain protocol. The new rules are stricter, and blocks generated by the old node can be accepted by the new node, but some blocks generated by the new node may not be recognized by the old node. Since most nodes will upgrade to the new rules, the network will eventually remain unified. For example, Bitcoin's SegWit upgrade is achieved through soft forks. Hard forks are more radical changes. When the new rules are not compatible with the old rules, nodes that follow the old rules and nodes that follow the new rules will continue to different blockchains. Take the Ethereum hard fork as an example. Due to differences in the handling of "DAO events", the community is divided into two chains: Ethereum and Ethereum Classic. In the digital asset trading service of HashKey Exchange , we will pay close attention to the dynamics of blockchain forks, make technical and operational preparations in advance, and ensure the security of user assets.
The impact of blockchain forks on the ecosystem is complex and diverse. From a positive perspective, it promotes the innovation and iteration of blockchain technology, and spawns new tokens and application scenarios. For example, Litecoin generated by Bitcoin forks is technically optimized; from a negative perspective, hard forks may lead to community fragmentation and market chaos. Investors need to be cautious about the risk of asset changes caused by forks. In practical applications, enterprises and platforms will use forks to achieve system upgrades or create new blockchain projects according to business needs. HashKey Exchange When evaluating and supporting new blockchain projects, it will also comprehensively consider their fork history and potential fork risks, and 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. Download link: https://www.hashkey.com/en-US/download Disclaimer: This material is for general information purposes only. It does not constitute, nor should be interpreted as, any form of solicitation, offer or recommendation of any product or service. It does not constitute investment, tax or legal advice. In no event should any news release be considered as recommendation of a particular type of digital asset. This material may include market data prepared by HashKey Exchange or data from third party sources. While HashKey Exchange makes reasonable efforts to ensure the reliability of such third-party information, such information may have not been verified. Graphics are for reference only. We make no representation or warranty, express or implied, to the timeliness, accuracy or completeness of the information in this material. Information may become outdated, including as a result of new plans, regulations or changes in the market. In making investment decisions, investors should not solely rely on the information contained in this material. The risk of loss in trading digital assets can be substantial and is not suitable for all investors. Any forward-looking statements in this material is subject to several conditions, uncertainties and assumptions. We undertake no obligation to update or revise any forward-looking statements. The English version shall prevail if there is any inconsistency between the English and Chinese versions.