Crypto Coin Forks
Another reason for holding crypto fork is backward compatibility.
While doing crypto trading through various apps, we all have seen the wild hike and also instant drop down of prices of cryptocurrency. Many of the people find this interesting in this case and it gives them the kick to invest therefore play with the crypto coins and make some money. But as a matter of fact, sometimes such scenarios goes positive as well as it goes the other way. Hence, in several countries as the market value of the cryptocurrency is increasing in a consistent manner, you may suddenly see a fall in price and it may cause you to stand with some huge loses. The phenomenon of such instant hike and fall in the crypto market is called Crypto Coin fork.
In the crypto market, the majority of forks happens with bitcoins. But same way you can't guarantee the other coins to be consistent for any specific duration. Crypto Fork is also called forking in this case. Talking about crypto forking, technically it means a software upgrade which possibly may happen for providing some protocol update. There are several types of forks. Hence the condition differs at the time of fork depending upon which fork is happening. In some cases, the crypto forks create an alternative version of the blockchain. In such a condition, you can run two blockchains simultaneously on different parts of the network and handle your crypto trading systems.
Another reason for holding crypto fork is backward compatibility. In few cases a software upgrade/update which is done in such a way that it can be backward-compatible or cannot be backward-compatible, and this is a whole different method altogether. The soft fork is also known as backward compatible forks.
As we just talked about the protocol change in the bitcoins, this is what called as hard forks. Here the system updates itself with new rules, it uses a new code base as a driving force, and this is when the latest version of the wallet you are getting by the update. Remember, that hard forks are not backward compatible.