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the need �or a hard �ork. H ow �orks w ork is it is added to the chain, thus linking previous

m uch like stock splits in the real w orld. W ith blocks and adding them to their chains.

holders o� tokens in the original blockchain

receiving an equivalent am ount o� coins in the
Ethereum Hard Forking

new blockchain, hard �orks are essentially a

In blockchain technology, a hard �ork is
splitting or doubling o� the blockchain. This

a perm anent divergence in the blockchain’s
m eans that one currency can be split into

history, w hich occurs w hen non-upgraded
tw o coins, but both coins are still e��ectively

nodes can’t validate blocks created by
w orth one unit in the process. The old chain

upgraded nodes. H ow ever, nodes not

continues separately as both chains share the

upgraded to the new ruleset w ill accept blocks
sam e history until a �ork occurs.

and transactions created by the updated

nodes, even i� they technically violate the

Bitcoin Hard Forks previous rules. This could result in tw o chains

coexisting tem porarily.
The term hard �ork has com e to m ean a

netw ork split or divergence resulting �rom

A hard �ork creates a new blockchain using
im plem enting a change in the ruleset o� a

the latest version o� the so�tw are client. W hen

cryptocurrency or blockchain. The netw ork

this happens, all users on nodes running an

can �ork so that tw o divergent chains arise

old so�tw are version are �orced to update and

and persist inde�initely.

upgrade to run on a blockchain com patible

w ith the latest version. H ard �orks allow radical
In a hard ork, the blockchain’s so tw are

changes in a blockchain w ithout requiring

diverges �rom the original so�tw are, and

consensus �rom the entire netw ork.

new blocks and transactions are validated

diverged. For a new chain to be able to

continue a�ter a �ork, it is also necessary �or Terra Hard Fork

there to be regular upgrades o� the so�tw are
The developm ent team states that this

(client) that runs the blockchain to keep it
hard �ork w ill be used to m ake com m unity

updated and com patible w ith any subsequent
contributions m ore e��ective. It w ill allow

changes. This is one o� the reasons w hy �orks
prom inent com m unity m em bers to channel

can som etim es lead to centralization pressure som e o� their assistance into developing

on one chain or another. this project. It w ill lead to a m ore �am iliar and

equal distribution o� resources and pow er

Why Forks Produce Free Coins in the Tera C om m unity. Terra w ill also be an

application developm ent plat�orm allow ing

A blockchain is a ledger o� transactions.
people to create apps quickly. Terra aim s

Each transaction is a string o� data signed by
to achieve this by im plem enting intelligent

the person that m ade the transaction. In order
contract technology in its blockchain. The

to validate these transactions, a netw ork o�
blockchain can have up to 2 m illion TPS

com puters m ust agree on w hat is true and
and have a block tim e o� 5 seconds. Terra is

w hat is �alse. Such consensus is called m ining. m ore than just an app developm ent plat�orm ;

A m ining com puter m ust be able to generate it also provides decentralized applications

large am ounts o� com putational pow er to in�rastructure.

attem pt the proo�-o�-w ork or block header.

As you can see, a hard �ork is a highly

The block header contains a hash (a unique signi�icant event in blockchain technology. It

num ber) o� the previous blocks, and a hash can lead to a split o� the entire blockchain,

o� the last block added to the blockchain. and tw o di��erent chains m ay em erge. It is

Every com puter then checks that hash on the im portant to note that hard �orks are a great

netw ork, w hich scores that block’s ability to w ay to introduce changes in the netw ork’s

m aintain consensus w ith an arbitrary rule. O nce consensus rules. They help ensure the

one such com puter signs o�� on a block header, netw ork can adapt and change w ith the need.

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