How Does the Community Consensus Mechanism Influence the Success of a Hard Fork?
The success of a hard fork is primarily determined by community consensus, which includes miners, developers, exchanges, and users. If the majority of the community, especially the economic actors (exchanges and businesses), adopts the new chain, the fork is successful, and the old chain often dies.
Lack of consensus can lead to a chain split, diluting hash rate and market value across two competing chains.
Glossar
Community Consensus Mechanism
Governance ⎊ The Community Consensus Mechanism, within cryptocurrency, options trading, and financial derivatives, represents a formalized process for decision-making distributed among stakeholders rather than centralized authority.
Community
Ecosystem ⎊ In the context of decentralized finance and crypto derivatives, this refers to the collective network of users, developers, and liquidity providers supporting a protocol or asset.
Hard Fork
Disruption ⎊ A hard fork represents a radical divergence in a blockchain’s protocol, creating a permanent split and typically resulting in a new cryptocurrency.