Software development: What are forks?

In software development projects, a fork is the creation of a project from the source code of the main one to reuse code to speed up the development process.

Something similar happens in cryptocurrencies since forks are used to clone the code of a cryptocurrency and create a new cryptocurrency from it or, on the other hand, to update the existing code; this can happen voluntarily or accidentally.

Remember that the algorithm of a given cryptocurrency establishes parameters to work peculiarly, because these are executed in decentralized networks, all parties must use the same rules and work together correctly to preserve the history of the blockchain.

There are different types of forks that are used depending on what we want to do, among which we find:

• Soft fork or soft forks. They are characterized by small adjustments or changes that are compatible with previous versions so it is not necessary to update all of them since the previous blocks are still readable.
• Rough forks or hard forks. These occur when developers make mistakes when making a new fork to update or fix bugs. Such an error causes the creation of a second blockchain which causes outdated nodes to reject transactions.

In conclusion, forks have a considerable impact on the cryptocurrency ecosystem both positive and negative.

Since just as forks create and enhance crypto assets, they can also create drama, increase risks, and fuel uncertainty within the community.