Skip to main content

What Is the Primary Financial Risk of a Successful Chain Fork?

The primary financial risk of a successful chain fork is the disruption of transaction finality and the potential for a double-spend attack. If a malicious fork gains enough consensus, transactions on the original chain could be reversed, invalidating settlements and causing a loss of funds.

This uncertainty erodes market confidence, leading to high volatility and a sharp drop in the asset's price on both chains.

How Does Transaction Finality Relate to the Vulnerability of a Double-Spend Attack?
How Does the Concept of ‘Disruption’ Affect the Long-Term Growth Rate Assumption?
How Does the Transaction Finality of a Blockchain Affect the Risk of Double-Spending?
What Is the Primary Difference between a Hard Fork and a Soft Fork in Blockchain Governance?