What Is the Concept of a “Fork” and How Does It Challenge “Code Is Law”?
A blockchain fork occurs when the network splits into two separate chains, often to reverse a transaction or change the protocol rules. A fork challenges "code is law" because it demonstrates that a human consensus (validators/miners) can ultimately decide to override the previously immutable code execution, such as reversing a hack.
Glossar
Human Consensus
Decision ⎊ Human Consensus refers to the collective, off-chain agreement reached by a blockchain community, often comprising core developers, miners, validators, and token holders, regarding a critical protocol change or a response to a major event.
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.
Immutable Code
Code ⎊ Within cryptocurrency derivatives, options trading, and financial derivatives, immutable code signifies a foundational layer of trust and verifiability, particularly relevant in decentralized systems.
The Dao Hack
Event ⎊ The Dao Hack was a seminal security incident involving the exploitation of a reentrancy vulnerability in a decentralized autonomous organization's contract, resulting in the draining of a significant portion of its Ether holdings.
Blockchain Fork
Divergence ⎊ A blockchain fork represents a deviation from a preceding version of the blockchain, arising when nodes operate under differing rulesets; this can manifest as a temporary split, ultimately resolving through consensus, or a permanent schism resulting in two distinct blockchains and potentially, two separate cryptocurrencies.