Hard Fork

  • 2023 Sep 03

What is a hard fork?

In the world of cryptocurrencies, a hard fork is an important concept that can have a significant impact on the development and evolution of a cryptocurrency network.

A hard fork is clearly a set of changes that occur in the rules of a cryptocurrency network protocol, leading to a network split. During this process, new versions of the cryptocurrency software introduce modifications to the underlying rules, and if users and miners accept these changes, a hard fork takes place.

Types of hard forks

Hard forks can be classified into two categories: planned hard forks and unplanned hard forks. Planned hard forks occur directly and are designed in advance, while unplanned hard forks are a result of unexpected and unforeseen events.

-Unplanned Hard Fork

Unplanned hard fоrk occurs in the blockchain when a change in the cryptocurrency protocol occurs that is not compatible with the previous version.

-Causes of unplanned hard fork

Unplanned hard fоrk can occur for various reasons, such as changes in protocol rules, security attacks, or software glitches.


Unplanned hard fork can lead to the splitting of the blockchain and the creation of two separate versions of the cryprocurrency. This can result in an increase in the number of currencies in the market or a decrease in investor confidence.

Loss of transaction in Unplanned hard fork

Unplanned hard fork in a blockchain network results in the loss of transactions or data. When a hard fork occurs and the network splits into two paths, two independent blockchain chains are created. In this situation, the transactions and data that exist in one branch do not exist in the other branch, and vice versa. This can lead to discrepancies and inconsistencies in data and transactions. Transactions that occur in one branch may be considered invalid in the other branch, and vice versa. This can create conflicts and disagreements among network participants regarding the validity of transactions and data.

Unplanned hard fоrk can potentially result in the temporary or permanent loss of transactions or data in one or both branches. This issue highlights the significant importance of data backup and security in a blockchain network.

Planned hard fork

Planned hard fоrk occurs in blockchain when changes are made to the protocol of a cryptocurrency, and users are notified about it.

The goal of planned hard fork

Improving the performance and features of a cryptocurrency, which may include increasing transaction speed, fixing security issues, adding new capabilities, or any other change that enhances the system.


Users can apply the performed updates and take advantage of the new features of a cryptocurrency and the changes it has undergone.

Non-disappearance of transactions in hard fork

Software Update: The software you use for sending and receiving transactions should be updated to the latest version. This will help you stay in sync with the latest network rules and protocols, and reduce the likelihood of a hard fоrk occurring due to compatibility issues with older versions.

Wallet Backup: Prior to a hard fork event, it is important to back up all your transactions and important data in your wallet. This can involve creating a backup of your private and public keys, seed phrase, or any other method used for wallet recovery. In the event of transactions being lost in a branch of the hard fork, you will have the ability to recover your data and transactions using the backup.

Tracking information about hard fork: Stay informed about the latest news and updates regarding hard forks and network upgrades. This includes following websites, forums, social media, and official sources of the blockchain project. By having up-to-date information, you can take appropriate actions regarding the maintenance of your transactions and data after a hard fоrk.

Referring to official sources: If you are a developer or contributor in a blockchain project, refer to the official project sources and follow their guidelines and instructions for maintaining and safeguarding transactions and data during hard fork. Although these measures can reduce the likelihood of transaction and data loss, it should always be noted that no method can absolutely prevent the loss of transactions and data during hard fork. Hard forks may occur due to technical, security, or internal organizational reasons, and as a result, the possibility of transaction and data loss can arise. Therefore, take necessary precautions to preserve your information in the event of hard fоrk.

Impacts of hard fork on the network:

Hard fork can have various effects on the network, including:

-Network Division:A hard fork results in the division of a blockchain network into two separate parts, each running different versions of software or network protocols. This division creates points of inconsistency and disagreements in the data and transactions.

-Blockchain Fork: Each new branch is independent of the previous branch and has a separate chain of blocks. This fork creates two distinct blockchain chains that all participants agreed upon before the hard fork.

-Computational Power Distribution: With hard fоrk, computational power is also divided among participants. Some participants may operate in one branch, while others operate in another branch, which reduces the overall computational power of the network.

-Branch Selection: Network participants must decide which branch to join. This decision may be based on new regulations, technical security requirements, or other preferences.

-Changes in laws and regulations: Hard forks are usually accompanied by fundamental changes in the rules and regulations of the network. These changes may include modifications to the consensus algorithm, reward mechanisms, transaction speed, and other technical aspects.

Examples of hard forks

Bitcoin Hard Fork: One of the most notable and important hard fоrks in the world of cryptocurrencies is the Bitcoin hard fоrk. This hard fork was created to address scalability issues related to the Bitcoin blockchain and resulted in the splitting of the network into two versions: Bitcoin and Bitcoin Cash.

Ethereum Hard Fork: This hard fоrk aimed to address a security incident that resulted in the theft of 3.6 million Ether. The hard fork, known as the DAO hard fork, led to the split of the Ethereum network into Ethereum (ETH) and Ethereum Classic (ETC).

Hard Fork Risks:

-Cryptocurrency community division

-Cryptocurrency price drop

-Security risks

Support Evaluation:

Before participating in a hard fоrk, it is important to evaluate the level of support from users and miners. Additionally, consider the support from the development team and security validation.