Hard vs. Soft Forks: What Institutional Investors Should Know

From fidelitydigitalassets.com

Blockchain networks can rewrite and modify their existing protocols through a process known as a “fork,” a mechanism which serves as a key driver behind the digital asset landscape’s constant evolution. Whether “hard” or “soft,” forks represent a change that can have significant implications for an asset’s long-term viability, risk, and return potential. For institutional investors, understanding the differences between hard and soft forks and their potential impact on asset performance and portfolio construction is essential to strategic planning. What Is a Fork? At its most basic, a fork refers to a ... (full story)