What Is A Hard Fork?

A hard fork is the process of splitting a blockchain into two. All related private keys and coins are also transferred to the new version. Think of it like a fork in the road: one path continues with the old rules, while the other takes a new direction. Such a fork is sometimes needed to fix bugs or add new features.

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đź•’ 11:22 PM

đź“… Nov 26, 2025

✍️ By chrison2

đź“ŤKey Takeaways

°A hard fork splits a blockchain and often creates a new coin.

°It can happen due to bugs in the code, major disagreements, or to introduce new features.

°Famous examples include Ethereum vs. Ethereum Classic and Bitcoin vs. Bitcoin Cash.

°In the 2022 Terra crash, the failure of the stablecoin UST led to a hard fork: Terra 2.0 (LUNA) and Luna Classic (LUNC).

đź“ŤWhen does this happen?
•There are several reasons for a hard fork:
°To introduce new features

°To fix a major security issue

°If there’s disagreement within the community

°To reverse transactions (for example, after a hack)

đź“ŤWhat happens to your coins?
If you hold certain crypto at the time of a hard fork, you won’t lose anything. In fact, you’ll receive the same number of coins on the new blockchain. But beware: that doesn’t mean your portfolio doubles in value. The new coins will have their own price.

Example: you hold 100 coins worth €1 each. After the fork, you also get 100 coins of the new coin, but they might only be worth €0.05 each. So you've gained €5, not €100.