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.
Why It Matters
A hard fork occurs when a cryptocurrency’s code is altered, resulting in the creation of a new version of the blockchain. This matters because it can affect the currency’s functionality and value, and can create controversy within the community.
Example
For instance, Bitcoin Cash was created from a hard fork of Bitcoin in 2017, aiming to increase transaction speed and block size. Users must decide which version to support in the wake of such changes.
Beginner Context
If you’re new to crypto, understanding hard forks can help you stay informed about potential splits in currencies you invest in, as they can affect your holdings significantly.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Block Explorer
A web-based tool that allows anyone to search and browse all transactions, wallet addresses, and blocks on a blockchain. Tools like Etherscan and Mempool.space are popular block explorers.
Leverage
Using borrowed capital to increase the potential return of an investment. In crypto trading, leverage allows traders to control larger positions with smaller amounts of capital.
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.
Initial DEX Offering
A token launch that takes place on a decentralized exchange rather than a centralized platform. IDOs give the public earlier access to new projects and allow for immediate open-market trading once launched.
Gas Price
The amount a user is willing to pay per unit of gas, usually quoted in gwei on Ethereum. Higher gas prices get transactions processed faster when the network is congested; lower prices can leave transactions pending.