Blockchain Hard Fork

Definition ∞ A blockchain hard fork represents a significant, incompatible change to a blockchain protocol. This upgrade requires all network participants to update their software to the new rules. After a hard fork, the blockchain splits into two distinct chains, one following the old rules and one following the new rules. Transactions on the old chain are invalid on the new chain, and vice versa.
Context ∞ Hard forks are frequently reported in crypto news, often signaling major protocol upgrades or community disagreements. These events can lead to the creation of new digital assets and market volatility. The community debate surrounding hard forks often centers on decentralization, security, and the future direction of a protocol.