What is a Fork in Blockchain?

A fork in blockchain occurs when a blockchain network splits into two or more separate chains, typically due to a fundamental disagreement or change in the network's protocol or consensus rules. Forks can be classified into two main types: hard forks and soft forks. A hard fork results in a permanent divergence of the blockchain, creating a new and incompatible chain, while a soft fork maintains compatibility with the existing chain but introduces new rules or restrictions. Forks can occur for various reasons, including protocol upgrades, consensus changes, or governance disputes.