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Chain Split
A chain split, also known as a "fork," occurs when a blockchain diverges into two separate chains due to differences in protocol or software updates. This can result from a disagreement among developers or miners about the rules governing the blockchain. A chain split can be categorized as a "hard fork" or "soft fork." A hard fork results in two completely independent blockchains, such as the split between Bitcoin (BTC) and Bitcoin Cash (BCH), whereas a soft fork is backward-compatible, and the blockchain continues as a single entity with new updates. Chain splits can also happen as a result of governance decisions, security concerns, or protocol upgrades, and they can lead to the creation of new cryptocurrencies or blockchain versions.
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