Hard Fork
Governance Layer, Validators, Protocol Control
Hard Fork is a permanent split in a blockchain network that occurs when nodes no longer agree on the consensus rules. This type of fork introduces changes that are not backward-compatible, meaning that nodes running the old version cannot validate blocks created by the new rules. Hard forks often arise from governance disputes, major protocol upgrades, or community disagreements about the future direction of a project. They can lead to the creation of entirely new networks and tokens.
Use Case: A blockchain community disagrees on the future monetary policy of a protocol. One faction implements a hard fork, creating a new chain with an updated supply cap, while the original chain continues under its existing ruleset.
Key Concepts:
- Consensus Mechanism ÔÇö Ensures all copies of the ledger remain synchronized and accurate without a central authority.
- Governance ÔÇö Decision-making structure used to manage protocol rules and network changes.
- Validator Node ÔÇö Participates in block validation and network consensus.
- Protocol Upgrade ÔÇö Planned or community-driven changes to a blockchainÔÇÖs core functionality.
Summary: A hard fork represents a fundamental change in a blockchainÔÇÖs rule set, creating a new path for development. While sometimes controversial, it can also foster innovation or reflect strong community values in decentralized governance structures.
| Feature | Soft Fork | Hard Fork |
|---|---|---|
| Compatibility | Backward-Compatible | Not Backward-Compatible |
| Community Split | Generally No | Possible/Expected |
| Token Creation | No New Token | New Token Often Created |
| Examples | SegWit (BTC) | Ethereum Ôåö Ethereum Classic |
| Enforcement | Voluntary Update | Network-Level Divergence |