What Is Chain Split?

Chain Split is synonymous with Fork in the Blockchain, and refers to a circumstance in which a blockchain breaks into two distinct chains. Chain splits are common in the crypto world when new governance rules are included in the blockchain’s code. Slide in to know more about how chain split works and what causes it.

What Is Chain Split?

Software forks occur when developers clone the codebase of an existing project and start their own independent work on top of it. As a result, one or more unique projects are separated from the original, “parent” project.

Chain splits, also known as cryptocurrency forks, are coins whose codebase has been cloned from another, earlier cryptocurrency and whose development continues independently of the parent coin’s direction.

Because many cryptocurrencies, particularly in the early years of the industry, were released as open-source projects, it is frequently extremely simple to fork a project, even for a developer lacking the expertise to design their own coin from scratch. As a result, some of today’s most valuable cryptocurrencies are forks or forks of multiple parent projects.

How Does Chain Split Occur?

A chain split occurs when developers build an independent coin based on the code of an established blockchain, leading to a separation, or split, from the original parent project.
This is possible because many cryptocurrencies, especially those developed in the early years of blockchain technology, are open-source projects. This means that their codebase is readily accessible to all users, enabling developers to adapt the code and fork from them, rather than having to develop a coin from scratch.


When a split happens, the new project develops independently from the original coin. Today, some prominent cryptocurrencies are actually forks from the original cryptocurrencies like Bitcoin, such as Litecoin and Bitcoin Cash.

Causes Of Chain Split

Chain splits happen for a variety of reasons. Some developers may argue that the original cryptocurrency’s technology is moving too slowly to meet demand and that certain technological adjustments may increase the coin’s acceptability.

As a result, Litecoin (LTC) was separated from Bitcoin (BTC), allowing the former to address current software or hardware concerns. Furthermore, the new fork may improve existing technology by allowing for faster block creation times, hence increasing the number of coins using a different hashing algorithm.

As blockchain technology advances, developers on a single blockchain may disagree ideologically about how the blockchain should develop or about blockchain applications. This can result in a chain split, with each developer evolving the coin in his or her own unique way.

This occurred with the separation of Bitcoin Cash (BCH) from Bitcoin (BTC) owing to opposing views on how the main cryptocurrency should scale in the future.
It also happened when Ethereum Classic (ETC) split from Ethereum (ETH) due to disagreements about whether developers could change the data on the blockchain to return stolen currency to their owners. A chain split may also be a more effective technique to increase the security of an existing blockchain.

Chain splits can also happen as a joke, like when Dogecoin (DOGE) broke from LTC. DOGE, which was inspired by an online meme, once had a market valuation of more than $2 billion.

Types Of Chain Split

When a chain divides, there are two sorts of forks that might occur: hard forks and soft forks. A hard fork is a substantial alteration in the original blockchain network that results in an immediate and direct separation from the chain.

The new token will no longer be interoperable with the blockchain from which it was created. A soft fork, on the other hand, does not separate the existing chain but rather improves it with new rules and features. As a result, unlike a hard fork, it stays “backward compatible.” When disputes are irreconcilable, a hard fork may still occur.

Negative Effects of Chain Splits

Although chain splits are often considered a way to improve existing blockchain technology and perhaps earn more money from them, they can also have negative consequences. These include user confusion, disruption of existing investments, and a loss of investor confidence as a result of centralization.

Regardless of the cause for a chain split, even if it is to strengthen an existing blockchain, users may be confused about which blockchain to continue investing in. There may also be existing rules and programs in place throughout the split. This could generate problems with the plans because resources and developers are being distributed as a result of the split.

With hash power dispersed across two blockchains as part of the split, there is a risk of centralization when hash power is lowered, raising the risk of monopoly. This will result in a loss of user and investor trust, posing a danger to the blockchain sector as a whole.


A chain split is another term for a cryptocurrency fork, in which the code of one coin is copied to generate whole new cryptocurrencies. It is a circumstance in which a new project is developed based on an existing cryptocurrency but is completely independent of the original blockchain as of the split.

Odu Promise

Odu Promise

Odu Promise is a full-time crypto-journalist with a great understanding of diverse blockchain education. He provide 100 percent original, well-structured, and intriguing material that brings delight to readers and keeps them interested all through.

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