In this episode, we discuss blockchain forks - what they are and what causes them.
For multiple parties to reach consensus, they must follow some rules. Rules regarding how to decide who would produce blocks and when, the interval between blocks, how big or small the blocks could be, and so on. These rules are together part of the consensus algorithm of the chain.
When some of the nodes decide not to update to the new rules, then a fork happens on the chain. Forks are of two types — soft and hard.