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Definition

A hard fork is a significant change to a blockchain protocol that is not backward compatible. This means that nodes running the previous version of the software will not accept blocks created by the new version. Hard forks can result in the creation of a new cryptocurrency if the community decides to split from the original chain.

Why it matters

• Hard forks can introduce new features or improvements to a blockchain.
• They can resolve issues or bugs in the existing protocol.
• Hard forks may lead to community disagreements, resulting in splits.
• They can affect the value and stability of the original cryptocurrency.

Risks & Pitfalls

• Hard forks can create confusion among users and investors.
• They may lead to a loss of funds if users do not follow the correct procedures.
• There is a risk of network instability during the transition period.

Examples

No specific examples provided.

Related

No related tokens, chains, or terms available.