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Crypto & DeFi

Hard Fork

A hard fork is a permanent divergence in a blockchain's protocol that makes previously invalid blocks valid (or vice versa). All nodes must upgrade to the new rules, or the chain splits into two separate networks. Hard forks can be planned upgrades or contentious splits.

Understanding the Concept

• Creates incompatibility between old and new protocol versions • Can result in two separate chains and tokens (like ETH/ETC) • Often used to implement major protocol changes • Requires community coordination and consensus

Real-World Example

The Ethereum Classic split happened after a hard fork to reverse the DAO hack. Some community members disagreed with changing transaction history, so they continued the original chain (Ethereum Classic) while others moved to the new chain (Ethereum). Both still exist today as separate networks with separate tokens.

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