Forks are a unique aspect of crypto assets which occur when a single blockchain breaks into two separate chains. These breaks can be separated into two categories: Soft Forks (“SFs”) and Hard Forks (“HFs”).
SFs occur when the majority of miners agree on a change to the underlying software of a crypto asset. All transactions going forward are backward compatible with the existing blockchain, even those that did not follow the majority.
HFs occur when the full network makes a significant change to the underlying software of a crypto asset. Typically, all transactions on the existing blockchain will be recognized as of the hard forked network's start date.
However, any transactions that occur after this start date will be incompatible and, therefore, not recognized by the original blockchain.
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