What’s the Difference Between a Hard Fork and a Soft Fork in Blockchain?
Updated July 5, 2025.
In blockchain, evolution isn’t optional. Things move fast, and forks are the mechanism that keeps everything evolving.
Key takeaways:
The primary difference between a hard fork and a soft fork lies in their impact on backward compatibility.
A soft fork is a backward-compatible upgrade. This means that even if some participants on the network don’t upgrade, they can still interact with the network.
A hard fork is not a backward-compatible upgrade. It introduces such a dramatic change that anyone who doesn’t upgrade is left running an old version of the blockchain, which is no longer compatible with the new one. This forces a permanent split, creating two separate blockchains.
These updates tweak the code, roll out new features, patch up issues, and sometimes steer the whole direction of a network. With 560 million+ crypto users in 2025 and regulatory shifts like MiCA compliance reshaping the landscape, understanding forks isn’t optional. They dictate security, scalability, and survival.
Hard forks vs. soft forks: The key differences
At its heart, the difference between a hard fork and a soft fork boils down to one critical concept: backward compatibility. This technical detail determines how an upgrade is implemented across the network and, most importantly, whether the blockchain moves forward as one or splits into separate paths.
What Is a Hard Fork in Blockchain?
A hard fork is a network upgrade that is not backward-compatible. The code changes so dramatically that old software just can’t keep up. Nodes that don’t upgrade? They stop speaking the same language as the new network.
That’s when the chain splits, permanently. Now you’ve got two separate blockchains, often with two different coins and, more than likely, two communities with very different visions.
When a hard fork’s on the horizon, users usually have to make a choice: update and move forward, or stay behind and run the old version.
In most cases, the majority upgrades, and the original chain slowly fades into obscurity. Though sometimes, both chains manage to keep going, stubbornly and independently.
Of course, not all hard forks are amicable. Some spark drama. Especially when there’s a philosophical rift about the project’s direction.
When consensus falls apart, the community does too, and suddenly you’ve got rival chains, each chasing their own version of the future.
Hard forks examples
Bitcoin Cash (BCH): Launched in August 2017, this fork was all about scalability. One camp wanted bigger blocks to fit more transactions; the other said no thanks and pushed for layer-2 solutions. The result? Bitcoin kept its 1MB block limit, while Bitcoin Cash broke off with a larger size and a different approach. Fast forward to 2025: BCH is still around, doing its own thing.
Ethereum Classic (ETC): After a major hack hit The DAO in 2016, the Ethereum community had a tough call to make. Most agreed to rewind the blockchain and erase the theft. Essentially undoing history. But a smaller group said nope, code is law, and stuck with the original chain. That chain became Ethereum Classic. Meanwhile, Ethereum (ETH) moved ahead with big upgrades like the merge between its execution and consensus layers.
Bitcoin Gold (BTG): This 2017 fork had a specific mission: to put mining back in the hands of regular folks. BTG switched Bitcoin’s mining algorithm to one better suited for GPUs instead of pricey ASICs, hoping to decentralize mining again. It didn’t set the world on fire, but it carved out a niche and still chugs along.
What is a soft fork in Blockchain?
A soft fork, in contrast, is a backward-compatible upgrade.
It introduces new, more restrictive rules, but here’s the trick: older nodes can still understand the updated blocks, as long as they follow the old rules too. So the blockchain doesn’t split. Everyone’s still on the same page, at least technically.
This makes soft forks a lot less disruptive. The upgrade can roll out gradually, giving folks time to catch up. Sure, older nodes might miss out on some functionality, but the network keeps running smoothly. No civil wars, no duplicate chains.
Soft fork example
Segregated Witness (SegWit): Rolled out on the Bitcoin network in August 2017, SegWit tackled the nagging issue of limited transaction capacity. It did this by shifting the signature (or “witness”) data outside the main part of the block, basically, cleaning up the way transactions were recorded.
This clever rearranging meant more transactions could fit per block without technically increasing the block size. Because the old nodes still recognized these transactions as valid, SegWit kept everyone together while still moving the network forward.
Bitcoin forks and their role
Forks might stir up drama now and then, but like it or not, they’re how blockchains grow up. In 2025, they’re still doing the heavy lifting. Helping networks stay fast, secure, and adaptable in a world that doesn’t slow down.
Scalability
With over 500 million people now dabbling in crypto, speed and cost are front and center. Nobody wants to wait forever or pay sky-high fees just to send a few bucks. Major networks like Bitcoin still struggle with transaction costs when things get congested, and that’s not exactly ideal for mass adoption. Forks that streamline transactions and cut costs aren’t just helpful. They’re necessary.
Security and interoperability
As blockchains keep evolving, so do the threats. Security upgrades are an ongoing priority, and so is interoperability. This is the ability for different blockchains to talk to each other without a translator. Forks are often the tool of choice for rolling out these kinds of improvements.
Regulation
Like it or not, governments are paying attention. Crypto’s regulatory environment is shifting fast, and developers have to keep up. Sometimes that means adding features through forks that help networks stay compliant, or at least not get shut down. As crypto’s total market cap pushes into uncharted territory, having the flexibility to adjust to new rules isn’t a luxury. It’s survival.
The economic factor
Inflation’s still hanging around in mid-2025, and central banks are playing a cautious game. Some hinting at rate cuts, others holding the line. All this uncertainty keeps the spotlight on Bitcoin as a possible hedge against shaky economies. That puts even more weight on its continued development. Investors want to know the tech can hold up under pressure, and forks are often how that tech gets better.
At the end of the day, forks are part of what makes blockchain unique. No central authority calling the shots. Just a global community, constantly debating, building, and pushing for what’s next. In the world of decentralized finance and beyond, forks aren’t a bug in the system. They are the system.
Should you chase free coins from a fork?
Before we jump into what’s brewing on the Bitcoin fork front, let’s get one thing straight: if you’re holding BTC and expecting a windfall from a new fork, proceed with caution. The crypto world may have matured, but shady schemes still pop up. So, a few important reminders to stay safe:
Never send your Bitcoin to claim forked coins. Legit forks don’t ask for that. If it’s a genuine chain split, any coins you’re entitled to will be credited based on your existing BTC holdings at the time of the fork; no action is required.
Never share your private keys. Seriously. If someone asks for them to “claim your forked coins,” it’s almost certainly a scam. Walk away.
Do your own research. Just because a project has “Bitcoin” in the name doesn’t mean it has anything to do with Bitcoin Core or the broader BTC developer community. Many forks ride the Bitcoin brand to gain attention, but that doesn’t make them trustworthy.
Upcoming Bitcoin forks to watch
As of mid-2025, the following forks are works in progress, and all details are subject to change.
Anonymous Bitcoin (ANON)
This project is experimenting with a hybrid consensus model. That is, combining Proof-of-Work with Proof-of-Stake, in order to improve the mining and validation process.
ANON also plans to integrate zk-SNARKs, a privacy protocol borrowed from Zcash and Bitcoin Private, to add stronger anonymity features. The idea is to create a more private, flexible version of Bitcoin, but it’s still early days. So, no fork date has been announced yet.
BitcoinZeroX
BitcoinZeroX is positioning itself as the “next level” in blockchain privacy. It aims to be more anonymous than Bitcoin Private by combining features from both Bitcoin and Hexxcoin. Holders of either asset (or both) would reportedly receive BitcoinZeroX at a 1:1 ratio after the fork.
Originally teased years ago, this project has resurfaced in 2025 with renewed development, though there’s no confirmed launch date as of yet.
Final thoughts: Forks could keep Bitcoin alive
Bitcoin was the first, and for a lot of people, it’s still the gold standard. Back when it launched in 2009, the whole idea was revolutionary: a peer-to-peer digital currency that didn’t need banks or middlemen to approve transactions. Just code, consensus, and a bit of cryptographic magic.
Fast-forward to 2025, and Bitcoin still holds the crown. But it’s not without its flaws. Transactions can be sluggish, with confirmation times still hovering around 10 minutes. And with a network that processes only about 7 transactions per second, it’s not exactly built for a high-speed, global payment system.
On top of that, fees can spike when the network gets busy, making small payments impractical.
Meanwhile, newer blockchains have been built from the ground up to be faster, cheaper, and more scalable.
Some can process thousands of transactions per second, often at a fraction of the cost. That’s tough to compete with if the goal is mainstream payments.
Bitcoin developers have been working on upgrades, of course. Most notably, the Lightning Network, which aims to make transactions faster and more affordable by moving them off-chain.
It’s promising, but still not a silver bullet, and adoption has been slower than some hoped.
So, where does that leave us?
Bitcoin will most probably stay number one in terms of value, influence, and recognition. It’s the most trusted name in the space, and that counts for a lot.
Important Note: These materials are for general informational purposes only and do not constitute financial, investment, or professional advice. Cryptocurrency investments involve significant risks, including potential substantial financial loss, and we do not endorse specific investments, tokens, or projects. Always conduct your own research and consult qualified financial or legal professionals before investing, as Omni.app disclaims liability for any losses arising from reliance on these materials to the fullest extent permitted by law.
