What Is a Chain Split?
A chain split is a situation in which the blockchain of a cryptocurrency splits into two separate chains. This can happen when there are disagreements among developers or miners about how to update the underlying code of the cryptocurrency, resulting in different versions of the same blockchain being created. The most famous example of this was Bitcoin’s hard fork in 2017, which resulted in both Bitcoin and Bitcoin Cash existing as separate cryptocurrencies.
Chain splits can also occur due to malicious attacks on a network, such as double-spending or 51% attacks. In these cases, one version of the chain will be considered valid by some users while another version may be accepted by others. It is important for users to understand what type of chain split has occurred so that they know which version(s) should be trusted and used for transactions. Chain splits can have significant implications for investors and traders who need to decide whether or not they want to hold onto their coins during a split event.