Fork
Definition
A fork is a divergence in a blockchain's protocol, creating two separate paths from a common history. Soft forks are backward-compatible (e.g. Bitcoin SegWit 2017); hard forks create a new, incompatible chain (e.g. Ethereum/Ethereum Classic 2016, Bitcoin/Bitcoin Cash 2017). Forks can be planned upgrades or contentious community splits. Holders of the original asset typically receive equal amounts of the forked coin.
Why Does This Matter?
Understanding Fork is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Fork feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.