Forked Protocols

Definition ∞ Forked protocols are new versions of existing blockchain protocols created when a community or development team modifies the original codebase. These modifications can result in either a “soft fork,” which is backward-compatible, or a “hard fork,” which creates a new, incompatible blockchain. Forks represent significant divergences in a protocol’s development path or governance. They often arise from disagreements on upgrades or fundamental design principles.
Context ∞ Forked protocols are a recurring event in the blockchain space, particularly with open-source projects like Bitcoin and Ethereum. They often signal a community split or a strategic redirection for a digital asset. Observing the success or failure of forked protocols provides insight into community consensus, developer influence, and the economic viability of different blockchain iterations.