Crypto Glossary

Posted on September 13, 2021 in

Hard Fork

A hard fork occurs when blockchain’s protocols are dramatically changed. Let’s say there is just one cryptocurrency. With a hard fork, the coin divides in two, and from then on, all the blocks and transactions that were previously invalid become legitimate. Because of this, all developers must update their software to the current version.

What is hard fork?

Hard fork is a phenomenon in the world of bitcoin and cryptocurrency when a change creates certain divergences in the blockchain as a consequence of miner or user activity or when rules are changed that causes the blockchain to hard fork. In the realm of cryptocurrencies, there are two types of forks: hard forks and soft forks. A hard fork, in contrast to a soft fork, does not resolve itself automatically based on user trends.

A hard fork is a rule change that has far-reaching ramifications for the whole protocol of the blockchain network, and it is referred to as such. When compared to the old rules, valid blocks produced using the new rules may be viewed as invalid, and invalid blocks produced using the new rules may be viewed as valid, which means that all nodes intended to work in accordance with the new rules must upgrade their software to reflect the new rules.

Why are there hard forks?

Hard forks have the potential to significantly weaken the security of a blockchain, but why do they occur in the first place? The answer is straightforward: Because of the rapid advancement of blockchain technology, hard forks are becoming increasingly important for network improvement. There are a variety of factors that can lead to a hard fork, not all of which are negative; for example, the addition of functionality, identification, and resolution of security risks and disagreements in the community, and reverse transactions on the blockchain network. 

Accidental hard forks can occur as well as on purpose. The majority of the time, these situations are quickly addressed, and individuals who were no longer in agreement with the main blockchain return to it after comprehending what had transpired. In a similar vein, hard forks that provide new features and upgrade the network typically allow individuals who have fallen out of consensus to rejoin the main chain.

Hard fork vs soft fork

To update the software underpinning a cryptocurrency, hard forks are not the only method. In contrast, soft forks are viewed as a safer and more compatible solution, as nodes that do not upgrade will still be considered legitimate on the chain. 

Soft forks may be used to introduce new features and functionalities that do not alter the network regulations. New features are commonly implemented via soft forks. 

It is possible to compare a hard fork with a soft fork to mobile device or computer operating system upgrades. The system will still be able to run all of the apps that were on the device before the upgrade. In this case, a hard fork means a full overhaul of the operating system. It will be able to change everything.

Related Articles

We offer investors a variety of opportunities in the digital assets industry. Our innovative platform provides access for anyone seeking investment returns anywhere, anytime. Our ecosystem aims at making finance an everyday enriching activity.


The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of Zipmex.

Before you pay Zipmex any money or DPT, you must be aware of the following.

  1. Zipmex is not currently licensed by MAS to provide DPT services. This means that you will not be able to recover all the money or DPTs you paid to Zipmex if Zipmex’s business fails.
  2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by Zipmex.
  3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
  4. You should be aware that Zipmex may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
  5. DPT held in your Hosted Wallet is not subject to the Singapore Deposit Insurance Scheme (“SDIC”) or any similar insurance or guaranty scheme of any other jurisdiction. In addition, funds stored in your Fiat Wallet do not benefit from the SDIC or any similar insurance or guaranty scheme of any other jurisdiction.

ZipUp+ products have not been approved by the Monetary Authority of Singapore (“MAS”) under the Payment Services Act 2019 and MAS has not reviewed or approved any features of these product offerings. Please review this link for the full terms and conditions and risk disclosure.