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
CeFi
Centralized Finance. Financial services that operate through centralized intermediaries such as exchanges or lending platforms, as opposed to decentralized protocols.
Support Level
A price level at which a cryptocurrency has historically found buying interest, preventing it from falling further. Traders watch support levels closely — if the price falls below a strong support, it may signal further downside.
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.
Candlestick
A chart element used in technical analysis that displays four price points for a given time period: the opening price, closing price, highest price, and lowest price. Green candles indicate the price rose; red candles indicate it fell.
Collateral
Assets pledged as security when borrowing cryptocurrency in DeFi. If the value of the collateral drops below a required threshold, it may be liquidated to repay the loan. Overcollateralization is common in DeFi lending protocols.