Fork
A change to a blockchain protocol. A soft fork is backward-compatible; a hard fork creates a permanent divergence, potentially resulting in two separate chains.
Why It Matters
A fork occurs when a blockchain splits into two separate paths, creating distinct versions of a cryptocurrency. This matters because it can affect a project’s community, its technology, and the value of coins involved.
Example
For instance, Bitcoin Cash emerged from a Bitcoin fork, introducing changes aimed at improving transaction speed. This led to new opportunities and challenges for both communities.
Beginner Context
For newcomers, understanding forks is essential as they demonstrate the evolving nature of blockchain technology. They can signify innovation or conflict within a cryptocurrency's ecosystem.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Escrow
A third-party service or smart contract that holds funds until certain conditions are met, then releases them to the appropriate party. In crypto, smart-contract escrow removes the need to trust a human intermediary.
Hard Fork
A major change to a blockchain protocol that is not backward-compatible. Nodes that do not upgrade to the new rules are rejected by the new chain, sometimes creating two separate blockchains. Bitcoin Cash was created via a hard fork of Bitcoin.
Resistance
A price level at which a cryptocurrency has historically had difficulty breaking above. When an asset approaches a resistance level, selling pressure tends to increase. If the price breaks through resistance, it can signal a strong uptrend.
Uniswap
The largest decentralized exchange by trading volume, built on Ethereum. Uniswap pioneered the AMM model, allowing users to trade any ERC-20 token directly from their wallet using liquidity pools rather than a traditional order book.
Bearish
A negative outlook on the price direction of a cryptocurrency or the broader market. A bearish investor expects prices to decline. The opposite of bullish.