Definition ∞ A blockchain network split occurs when a single blockchain divides into two separate, independent chains. This division typically results from a fundamental disagreement among network participants regarding protocol upgrades or significant changes to the ledger rules. Each new chain then proceeds to validate transactions and build blocks according to its own distinct set of rules, creating parallel transaction histories. Such events can cause considerable market volatility and user confusion within the digital asset ecosystem.
Context ∞ The discussion surrounding blockchain network splits often centers on their implications for network security, token utility, and developer consensus. Future developments frequently involve mechanisms to prevent contentious splits or strategies for managing the aftermath, including asset distribution across new chains. Understanding these divisions is crucial for interpreting news on protocol governance and digital asset lineage.
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