Cryptocurrency forks: types, features, and the best-known examples
Fork: what does it mean in the context of cryptocurrencies?
A cryptocurrency fork is a change to the rules of the original project for the purpose of launching a separate project. Essentially, a cryptocurrency fork is a new blockchain created on the basis of an existing one but with modified source code.
The term "fork" was borrowed from the field of software development. Among programmers, the term "fork" describes a situation in which the code of a particular project is used as the basis for developing a separate product.
As a result, this product is viewed not as something entirely new and created from scratch, but as a branch of an existing project, similar to a tree branch or the prongs of a fork, which is where the term "fork" originated.
The first fork in the cryptocurrency industry was Namecoin, which "split off" from Bitcoin in 2011.
Note: Any update to an existing blockchain is often mistakenly referred to as a fork or even a hard fork, but this is incorrect. For example, the well-known Berlin upgrade on the Ethereum network merely introduced changes to the existing network and did not require the creation of a new one. However, the incident on the Ethereum network in 2016 involving the hack of the decentralized protocol The DAO did lead to the creation of a fork, meaning a new blockchain.
Why cryptocurrency forks are carried out
Cryptocurrency forks may be carried out for various reasons. In most cases, developers want to:
- increase blockchain throughput;
- reduce transaction fees;
- add new features;
- eliminate identified vulnerabilities;
- change the consensus algorithm;
- revise the rules governing coin issuance;
- restore the network after a major incident;
- implement a concept that was not supported by the majority of the community.
A cryptocurrency fork may also result from a conflict of interest. Developers, miners, node operators, investors, and users may have different views on how a cryptocurrency project should develop. If they cannot agree on a common set of rules, one group may continue operating under the old rules, while another may launch a separate version of the network, that is, its fork.
Therefore, a fork is not only a technical event but also a socioeconomic one. The code determines the rules of the blockchain, but the decision as to which version should be regarded as the main one is ultimately made by the participants in the ecosystem: users, exchanges, wallets, developers, validators, and miners.
Types of cryptocurrency forks
There are two main types of cryptocurrency forks: a "soft" fork (minor code modification), and a "hard" fork (major code modification).
A "soft" fork involves relatively minor changes to the original project's code, which is where the term "soft" comes from. In many cases, due to the limited scope of the changes, a cryptocurrency soft fork does not even require the creation of a new network.
Some of the best-known examples of soft forks include the SegWit and Taproot upgrades on the Bitcoin network. These upgrades simply introduced new address formats and new functionality into the protocol of the leading cryptocurrency.
For example, the SegWit soft fork reduced the size of transactions, thereby allowing more transactions to be included in each block, while Taproot made it possible to combine several digital signatures into a single transaction, something the Bitcoin blockchain had not previously supported.
A "hard" fork involves more substantial changes to the operating rules of a decentralized network and, as a rule, requires the creation of a new blockchain. Some of the best-known Bitcoin hard forks include Litecoin, Bitcoin Cash, Bitcoin SV, and Bitcoin Gold.
Although the changes to the protocol code in all these projects were not particularly substantial, they are classified as cryptocurrency hard forks because launching them required the creation of new blockchains.
It should be noted that two scenarios are possible after a hard fork. If virtually all participants adopt the new rules, the old chain stops developing. However, if both versions receive sufficient support from the cryptocurrency community, two independent blockchains and two digital assets will emerge.
Examples of forks in the cryptocurrency industry
1. Dogecoin (DOGE)
The Dogecoin fork is the leading memecoin on the market and was created for humorous purposes in 2013. It is the largest fork by market capitalization, exceeding $11 billion as of July 2026. By this measure, the Dogecoin fork ranks among the ten largest cryptocurrencies.
Notably, Dogecoin is a fork of the Litecoin cryptocurrency, which, in turn, is a fork of Bitcoin.
A key feature of the Dogecoin fork is its unlimited supply, which distinguished it from other well-known deflationary cryptocurrencies at the time, such as Bitcoin and Litecoin. Initially, the maximum supply of DOGE was set at 100 billion coins. However, in March 2014, an upgrade to the Dogecoin network removed this limit.
2. Bitcoin Cash (BCH)
Bitcoin Cash is the only fork, apart from Dogecoin, that ranks among the twenty largest cryptocurrencies by market capitalization. In addition, Bitcoin Cash remains the largest fork of Bitcoin, with a market capitalization of nearly $4.8 billion as of July 2026.
Bitcoin Cash emerged in August 2017 as the Bitcoin community's response to the controversial SegWit "soft" fork on the Bitcoin network. The main change introduced by Bitcoin Cash was a fourfold increase in the block size, from 8 MB to 32 MB. This made it possible to increase network throughput and reduce transaction fees.
Notably, the Bitcoin Cash community also split, resulting in the creation of another fork, Bitcoin SV.
3. Ethereum Classic (ETC)
Following the split within the Ethereum community in 2016 after the incident involving The DAO, a decision was made to release an emergency fork to reverse transactions on the network affected by the attack and return funds to investors.
The fork resulted in the creation of a new blockchain that retained the original name. The original version of the blockchain continued to receive support from many members of the community and therefore remained operational under the name Ethereum Classic.
As of July 2026, the market capitalization of the Ethereum Classic fork is $1.09 billion, placing the asset 52nd in the overall cryptocurrency ranking.
4. Bitcoin Satoshi Vision (BSV)
Bitcoin SV is a secondary fork that emerged in November 2018 as a result of disagreements within the Bitcoin Cash team.
Under the Bitcoin SV protocol, the block size was increased by another factor of four compared with the Bitcoin Cash fork, reaching 132 MB. The team subsequently increased the block size to 2 GB.
However, the scaling improvements did not help the project: the Bitcoin SV fork has performed significantly worse than Bitcoin Cash. The asset ranks only 105th among cryptocurrencies, while its market capitalization is just $289 million, almost 20 times less than that of the Bitcoin Cash fork.
5. Bitcoin Diamond (BCD)
During the altcoin season, many Bitcoin forks saw their prices rise without any fundamental justification, driven by widespread investor enthusiasm.
This led to the creation of numerous cryptocurrency forks seeking to replicate the success of the leading digital assets. Bitcoin Diamond is one such cryptocurrency fork.
As of July 2026, the Bitcoin Diamond fork ranks only 888th by market capitalization, at just $11.8 million, and is more appropriately classified as a zombie coin.
Conclusion
Cryptocurrency forks help blockchains develop, resolve technical shortcomings, and implement alternative concepts. However, not every branch becomes successful: the long-term value of a project depends not only on its code but also on its security, infrastructure, liquidity, and community support.
The history of Dogecoin, Bitcoin Cash, Ethereum Classic, and numerous little-known forks demonstrates that copying or modifying open-source code is relatively easy. Building an independent ecosystem that developers, investors, and digital asset holders will actually use is considerably more difficult.