The concept of a network split refers to the updating and splitting of blockchain networks for any reason. A fork is one of the most common causes of network splits. A fork can occur when blockchain networks are updated. As a result of this fork, the blockchain world refers to the division of the network as a chain split. These splits are called hard forks and soft forks. In blockchain networks, a soft fork results in updates that are compatible with legacy crypto asset wallets and software already on the network. Soft forks do not involve any comprehensive changes to the network. Soft forks do not require the implementation of any changes to the factors on the network. Users do not have to make any changes to the network as a result of soft forks.
Hard forks, another type of fork in blockchain networks, work differently. In these network splits, changes can be made to even the most fundamental aspects of the blockchain network. More precisely, hard forks occur when you want to make sweeping changes to the network. They are the result of more intensive updates than soft forks. These updates can more clearly divide the network in two. Therefore, after a split or hard fork, all factors in the old network need to apply the necessary updates.
What Is the Importance of Chain Split in Blockchain Network?
As a result of such splits in blockchain networks, new cryptocurrencies can be created. New cryptocurrencies have emerged as a result of forks in cryptocurrencies with high market power such as Bitcoin and Ethereum. Forks in blockchain networks are very important for the blockchain network that will be split. There may be disagreements and different opinions among users in blockchain networks. In such cases, network fragmentation can occur. Differences of opinion between users on any blockchain network can create problems for the blockchain network. At the same time, this can lay the groundwork for the creation of solutions and updates that are expected to be realized in line with the problems. For all these reasons, network divisions are very important for blockchain networks to develop, change, stay up-to-date, and renew.
What Are the Important Examples of Chain Split?
Today, many different cryptocurrencies have emerged as a result of network fragmentation. Blockchain ecosystems may experience one or more bifurcations during the operations and work of miners and users. The vast majority of cryptocurrencies have emerged as a result of such forks. These new cryptocurrencies are traded as cryptocurrencies that are different from the main cryptocurrency of the network, even though they are linked to the same base.
In some cases only hard bifurcations can cause this, but in exceptional cases soft bifurcations can also become hard bifurcations and divide the network. If the updates and innovations that come with a soft fork are not sufficiently accepted in the community, it can be said that these soft forks evolve into hard forks.
For instance, a fork in Bitcoin resulted in Litecoin and Bitcoin Cash. For Ethereum, as a result of the fork in 2016, Ethereum Classic and Ethereum became two different cryptocurrencies that continued on the same network.
