Explanation
In a soft fork old nodes stay compatible; in a hard fork two chains and therefore two coins appear. Both require coordination between developers, miners and exchanges.
Soft and hard
A soft fork tightens the rules: old software still accepts the new blocks, so the network stays whole. A hard fork widens or changes the rules such that old software rejects new blocks. If both camps continue, two chains and two coins emerge, each sharing history up to the split point.
What it means for holders
In a split you in principle hold the same amount on both chains. That sounds like free money, but combined value is rarely higher and claiming carries risks: fake claim tools are a classic scam. For tax, in the Netherlands the received coin is simply box 3 assets; in Belgium treatment depends on the management character.
Key takeaways
- Soft fork: compatible. Hard fork: possibly two chains.
- Claim tools are a known scam route.
- Combined value rarely rises.