A hard fork is a permanent divergence in the blockchain of a cryptocurrency, resulting in two separate branches or chains. A hard fork occurs when a single cryptocurrency splits in two. A hard fork results in the creation of a new branch of the blockchain with different rules. This means that after the hard fork, nodes running the new branch will no longer recognize the old branch and vice versa. ^[1]

Overview

In the world of cryptocurrency, a hard fork is a permanent change in the underlying protocol of a blockchain network. A hard fork is a type of software upgrade that requires all participants in the network to upgrade their software in order to continue to use the network. Hard forks typically occur when the existing code of a blockchain is changed or updated, leading to two versions of the existing blockchain. The existing blockchain is referred to as the legacy chain, and the new blockchain is referred to as the forked chain. ^[1][2]

Hard forks can have a number of different implications for the users of a cryptocurrency. For example, if a hard fork is not accepted by a majority of the users, it can lead to two separate currencies, each with its own set of rules and regulations. Additionally, hard forks can also lead to disputes between users who support different versions of the cryptocurrency. This can lead to a lack of consensus among users, which can have a negative impact on the overall value of the cryptocurrency. ^[3]