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A Bitcoin fork happens when new code is “branched” out of Bitcoin’s source code in order to slightly change the rules of the Bitcoin network. Soft forks that play well with the old rules, and hard forks that create new rules completely.
Hard forks result in the creation of new coins that abide to these new rules. Each person that held Bitcoins before the fork, will now get new “forkcoins” equal to the amount of his Bitcoin holdings at the time of the fork.
Forkcoins can either be claimed freely using DIY methods or by using services, which take the hassle away but may charge considerable fees.
That’s Bitcoin forks in a nutshell. If you want a more detailed explanation about Bitcoin forks keep on watching. Here’s what I’ll cover:
0:41 – What is a Bitcoin fork?
2:14 – Soft forks vs. Hard forks
2:34 – Why are forks important?
3:01 – Get “free money” from forks
5:00 – Why forks occur
6:31 – Claiming forkcoins
8:13 – Conclusion
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What Are Blockchains, What are Bitcoin Forks? A Simple Explanation.
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