Ethereum Hardfork

Definition ∞ An Ethereum Hardfork is a significant, backward-incompatible upgrade to the Ethereum blockchain protocol that necessitates all network participants to update their software to conform to the new rules. This event results in a permanent divergence from the old chain, often introducing new features, optimizing performance, or addressing critical security issues. It represents a fundamental change in the network’s operational logic.
Context ∞ Ethereum hardforks are meticulously planned events, with current discussions centering on the network’s ongoing transition to a proof-of-stake consensus mechanism and subsequent scaling improvements. A critical future development to watch for is the implementation of further sharding phases, which will significantly enhance transaction throughput and data availability. Each hardfork requires widespread coordination among node operators and developers to ensure a smooth transition and network continuity.