Definition ∞ A chain split occurs when a blockchain diverges into two distinct, independently operating chains due to a disagreement among network participants regarding protocol rules. This event often results from a hard fork, where a software upgrade is not backward-compatible. Each new chain then processes transactions and maintains its own ledger, creating separate versions of the cryptocurrency. Such splits can have significant implications for asset holders and network stability.
Context ∞ The situation surrounding chain splits often involves community governance challenges and differing visions for a blockchain’s future development. A key debate centers on the potential for network fragmentation and the impact on decentralization and security. Future developments may include more robust governance mechanisms to mitigate contentious splits, or the emergence of new technologies that allow for smoother protocol upgrades without significant network division.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
