In January 2009, a new financial landscape started gaining traction: The genesis block on the Bitcoin blockchain was mined. Every transaction since has been governed by a clear set of rules. However, the open-source nature of blockchain also created opportunities for refinement. But when the rules or protocols change, they don’t inherently alter the original Bitcoin. Instead, they lead to what’s known as a Bitcoin fork. If you’re curious about Bitcoin forks, including what they are, why they happen and how they impact the crypto landscape, here’s what you need to know.
Defining Bitcoin Forks
In the simplest sense, Bitcoin forks are like branches off of the original blockchain. When a portion of the community wants to alter Bitcoin’s protocols or rules in a significant way, they can use the original blockchain as a jumping-off point but ultimately head in a new direction. The original blockchain – and its associated rules and protocols – also continue forward.
The process became known as forking because the resulting “split” resembles hitting a fork in the road. Both paths are viable and formal, and they share an origin. However, the directions they go from the moment of the split can vary greatly.
Additionally, when a fork takes place, the blockchain that heads in a new direction isn’t always considered Bitcoin in the classic sense. Instead, Bitcoin forks can spur altcoins. While some may have “Bitcoin” in the name, they’re not the same as the original.