What Are Forks In Bitcoin?

A Bitcoin fork refers to a protocol change, leading to two distinct versions of the protocol, each with different rules. While one branch continues the original protocol, the other adopts the modified one. These can be categorized as 'soft' or 'hard' forks. A soft fork retains compatibility with the original version, whereas a hard fork signifies a permanent diversion from the previous protocol. It's crucial to understand forks as they determine the evolution and functionality of the Bitcoin network.