Crypto Basics

What is a Hard Fork and How Does it Work?

Discover what a hard fork is and how it works in blockchain technology. Learn about its impact and implementation in this comprehensive guide
S. Vishwa
5 Minutes
MIN

In the world of blockchain technology, a hard fork refers to a significant and radical change in a network's protocol. This change results in the creating of two separate branches, one following the previous protocol and the other following the new version. 

Unlike a soft fork, which is a minor upgrade to the protocol, a hard fork requires all nodes or users to upgrade to the latest version of the protocol software.

Understanding Blockchain and Forks

Before delving into hard forks, it's important to understand the basics of blockchain technology. A blockchain is a decentralized digital ledger that records transactions and other events in a series of blocks. 

Each block contains data and a set of instructions, known as protocols, which dictate how the blockchain network functions. Because a blockchain is decentralized, any changes to its protocol need to be voted on and approved by its community of users. 

When developers propose major changes or disagreements arise regarding the development of a blockchain, a hard fork may be initiated to create a new and separate blockchain.

How Does a Hard Fork Work?

When a hard fork occurs, the new version of the blockchain is no longer compatible with older versions. This creates a permanent divergence from the previous version of the blockchain. 

The new rules and protocols implemented through the hard fork create a fork in the blockchain, with one path following the upgraded blockchain and the other path continuing along the old one.

Miners, who play a crucial role in verifying transactions and maintaining the blockchain, must choose which blockchain to continue verifying. Holders of tokens in the original blockchain will also be granted tokens in the new fork. 

However, it's important to note that the old version of the blockchain may continue to exist even after the fork, potentially with security or performance flaws that the hard fork aimed to address.

Reasons for Hard Forks

Developers may implement a hard fork for various reasons. One common motivation is to correct significant security risks found in older versions of the software. 

Hard forks can also introduce new functionality or reverse transactions, as seen in the case of the Ethereum blockchain's hard fork to address the hack on the Decentralized Autonomous Organization (DAO).

In 2016, the Ethereum community unanimously voted in favor of a hard fork to roll back transactions that resulted in the theft of millions of dollars worth of digital currency. 

The hard fork allowed DAO token holders to retrieve their funds through a newly created smart contract. While the hard fork did not undo the network's transaction history, it enabled the recovery of stolen funds and provided failsafe protection for the organization.

Examples of Hard Forks

Hard forks have occurred in various blockchain networks, not just in Bitcoin. Bitcoin itself has witnessed several notable hard forks. 

In 2014, Bitcoin XT emerged as a hard fork to increase the number of transactions per second that Bitcoin could handle. However, the project lost interest and is no longer in use.

Another significant hard fork in the Bitcoin ecosystem took place in 2017, resulting in the creation of Bitcoin Cash. 

The hard fork aimed to increase Bitcoin's block size to improve transaction capacity. Subsequently, in 2018, Bitcoin Cash experienced another hard fork, leading to the emergence of Bitcoin Cash ABC and Bitcoin Cash SV.

Ethereum, another prominent cryptocurrency, also underwent a hard fork in response to the DAO hack mentioned earlier. The fork resulted in the creation of Ethereum Classic, which maintained the original blockchain and the updated Ethereum network.

Pros and Cons of Hard Forks

Hard forks offer several benefits to blockchain networks. They can address security issues, enhance the performance of a blockchain, and introduce new features or functionalities. 

Hard forks also provide an opportunity for participants in a blockchain community to pursue different visions for their projects and potentially resolve disagreements.

However, hard forks also come with disadvantages. They can confuse investors when a new but similar cryptocurrency is created alongside the original. 

Furthermore, hard forks may expose blockchain networks to vulnerabilities, such as 51% attacks or replay attacks. Additionally, the existence of the old version of the blockchain after a hard fork may lead to security or performance flaws that the fork aimed to fix.

Hard Forks vs. Soft Forks

While hard forks create two separate blockchains, soft forks result in a single valid blockchain. In a soft fork, the blockchain's existing code is updated, but the old version remains compatible with the new one. 

This means that not all nodes or users need to upgrade to the latest version of the protocol software. The decision to implement a hard fork or a soft fork depends on a blockchain network's specific goals and requirements. 

Hard forks are often favored when significant changes are necessary, even if a soft fork could potentially achieve the same outcome.

Conclusion

Hard forks play a significant role in the evolution of blockchain technology. They allow for radical changes to a network's protocol, creating new blockchains and potential improvements in security, performance, and functionality. 

However, hard forks also come with risks and challenges, such as confusion among investors and possibly exposing blockchain networks to vulnerabilities.

As the blockchain industry continues to evolve, it's essential for investors and stakeholders to stay informed about proposed changes and forks in their cryptocurrency holdings. 

Understanding the implications of hard forks and their potential impact on the value of crypto assets is crucial for navigating this rapidly changing landscape.

Remember, investing in cryptocurrency should be cautiously approached, especially for newcomers who are still learning how blockchain works. Stay updated, do thorough research, and seek professional advice before making investment decisions.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.

Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.

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→ Join the waitlist to be first to trade TM Global 100.

TL;DR (snippet)

What it is: A rules-based index that holds the top-100 in bull markets and moves to stablecoins in bear markets—paired with a Holdings Treemap, Table, and Transactions Log for full visibility.

Why it matters: Weekly rebalances and transparent change tracking reduce guesswork and help you understand how and why your exposure evolves.

Who it’s for: Hands-off allocators and active traders who want a disciplined, visible core position.

Next step: Join the waitlist to be first to trade TM Global 100.

Why Transparency Matters in October 2025

Today’s crypto investor expects more than a chart and a headline weight. You want to audit your index: which coins, what size, and what changed after each rebalance. That’s exactly why we ship three visibility layers on day one: Gauge → Treemap → Transactions Log—plus a classic holdings table for power users.

In practical terms, a holdings treemap shows proportional weights at a glance, a table lets you sort and export details, and a transactions log chronicles every add/trim/exit during rebalances and regime switches. Together, they answer the search intent behind “crypto index holdings” and “weekly rebalancing” with an immediately scannable source of truth.

How the TM Global 100 Index Works (Plain English)

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  • Weekly rebalancing: We adjust constituents and weights weekly to reflect updated rankings—so the index stays aligned with the market.

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  • What you’ll see on launch: A price tile, “tokens: 100,” “rebalances weekly,” and a Buy Index flow that can complete in about 90 seconds, end-to-end.

See the strategy and rules. (TM Global 100 strategy)

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  • Time saved: Skip ranking lists, manual screeners, and cross-exchange rebalances.

  • Lower execution drag: A single indexed flow helps reduce the slippage and fees you’d pay hopping between many tokens.

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Step-by-Step: How to Get Early Access (Waitlist)

  1. Open the Indices hub and select TM Global 100. (Token Metrics Indices hub)

  2. Join the waitlist with your email to get launch-day access and updates.

  3. (Optional) Connect your wallet so you’re ready to buy at launch.

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→ Join the waitlist to be first to trade TM Global 100.

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want “own the market” exposure and automatic upkeep. Consider if you dislike micromanaging.

  • Active Trader: Want a disciplined core that moves to stablecoins in bears while you take satellite bets elsewhere.

  • TM Member/Prospect: Already trust TM research and want rules-based execution with full visibility.

  • Starter Portfolio Builder: Prefer a single decision over 20+ token buys and periodic DIY reweights.

  • Transparency Seeker: You won’t tolerate black-box products; you want a real transactions log and holdings you can audit.

  • Tax-Aware Rebalancer: You’d rather not run frequent piecemeal trades yourself.

  • Mobile-First User: Want a fast, on-page buy flow instead of tab-hopping across venues.

  • Analytics Fan: Enjoy comparing weights and changes in the treemap after each weekly rebalance.

FAQs

What is a crypto index with a holdings treemap?
It’s a rules-based basket of cryptocurrencies where you can visually inspect weights via an interactive treemap, alongside a sortable table and a transactions log that records every rebalance and regime switch.

How often does the index rebalance?
Weekly. Rebalances update constituents/weights to reflect current top-100 rankings; separate regime switches can also move the portfolio between tokens and stablecoins when the market signal changes.

What triggers the move to stablecoins?
A proprietary market signal. When bearish, the index exits tokens to stablecoins; when bullish resumes, it re-enters the top-100 basket.

Can I fund with USDC or fiat?
At launch, funding/settlement options surface based on your connected wallet and supported chains. USDC payout is supported on selling; fiat on-ramps may be added later.

Is the wallet custodial?
No. The embedded wallet is self-custodial—you control your funds.

How are fees shown?
Before you confirm, the buy flow surfaces estimated gas, platform fee, max slippage, and min expected value.

How do I join the waitlist?
Open the Indices hub, navigate to TM Global 100, and add your email. You’ll be notified on launch with a direct link to buy.

Security, Risk & Transparency

  • Self-custody: Embedded smart wallet with user control.

  • Operational clarity: Weekly rebalances; regime logic documented in the Strategy modal.

  • Fee & slippage preview: All surfaced before you confirm a trade.

  • Data integrity: Holdings treemap + table and transactions log reflect each executed change.

  • Regional notes: Availability and on-ramps can vary by jurisdiction.
    Crypto is volatile and can lose value. Past performance is not indicative of future results. This article is for research/education, not financial advice.

Conclusion + Related Reads

TM Global 100 is built for investors who want broad market exposure and the receipts to prove what they hold—treemap, table, and transactions on every rebalance. If you value rules, discipline, and transparency, join the waitlist and be ready on launch day.

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→ Join the waitlist to be first to trade TM Global 100.

TL;DR (snippet)

  • What it is: Rules-based index that holds the top-100 in bull markets and moves to stablecoins in bear markets.

  • Why it matters: Weekly rebalances + transparent holdings and transaction logs.

  • Who it’s for: Hands-off allocators and active traders who want a disciplined core.

  • Next step: Join the waitlist to be first to trade TM Global 100.

Why Education / How-To Matters in October 2025

Crypto’s gotten faster, not simpler. Between regime switching, weekly rebalancing, and dozens of venues, DIY baskets are easy to get wrong. A clear, step-by-step how to buy a crypto index guide helps you execute with confidence, whether you’re optimizing a core position or setting up a long-term plan.
Definition (featured-snippet friendly): A crypto index is a rules-based basket of digital assets that rebalances on a set schedule and may switch to stablecoins during bearish regimes.

Related terms we’ll touch on: crypto index, weekly rebalancing, regime switching.

How the TM Global 100 Index Works (Plain English)

  • Regime switching:


    • Bullish → the index holds the top 100 crypto assets by market cap.

    • Bearish → the index moves fully to stablecoins and waits for a re-entry signal.

  • Weekly rebalancing: Reflects updated market-cap rankings and weights each week.

  • Transparency: Strategy modal explains rules; Gauge → Treemap → Transactions Log show exactly what you hold and when it changes.

  • What you’ll see on launch:


    • Live price tile & market signal “Gauge”

    • 100 tokens (bull regime) & “rebalances weekly”

    • Holdings Treemap + Transactions Log

    • One-click Buy flow with fee/slippage preview

Soft CTA: See the strategy and rules.

Benefits at a Glance (Why This Beats DIY)

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  • Lower slippage chaos: One flow instead of many fragmented trades across venues.

  • Radical visibility: Gauge → Treemap → Transactions Log show positions and changes—no black box.

  • One-click upkeep: You focus on allocation size; the index handles the rest.

Step-by-Step: How to Get Early Access (Waitlist)

  1. Open the Indices hub: Go to Token Metrics Indices hub.

  2. Join the waitlist: Enter your email to get notified at go-live and receive the 90-second buy instructions.

  3. (Optional) Prepare your wallet: If prompted at launch, create/connect the embedded self-custodial wallet.

  4. Launch day email: We’ll send a direct link to TM Global 100 with the Buy Index button.

  5. Review before you buy: See fees, max slippage, min expected value, and current holdings.

  6. Confirm purchase (~90 seconds): Approve the transaction; you’ll see status and a link to My Indices.

  7. Track updates: Weekly rebalances and any regime switches appear in Holdings and Transactions.

→ Join the waitlist to be first to trade TM Global 100.

‍

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want broad market exposure without micromanaging coins.

  • Active Trader: Prefer to keep a rules-based core while you take satellite bets elsewhere.

  • TM Member/Prospect: Already use TM research and want a simpler path to execution.

  • Rebalance-Fatigued: You’ve missed updates or paid excess fees trying to DIY.

  • Transparency-First: You want clear rules, visible holdings, and a public transactions log.

  • Drawdown-Wary: You value an automatic stablecoin stance during bearish regimes.

FAQs

What is a “how to buy a crypto index” flow?
It’s a streamlined checkout to buy a rules-based basket (index) in one place. For TM Global 100, you’ll see fees/slippage upfront, then confirm in a single flow.

How often does the index rebalance?
Weekly. Rebalances update constituents/weights. If the regime flips, the portfolio can switch between top-100 tokens and stablecoins outside the weekly cycle.

What triggers the move to stablecoins?
A proprietary market signal. In bearish conditions, the index exits tokens into stablecoins and waits for a bullish re-entry signal.

Can I fund with USDC or fiat?
At launch, you’ll follow the on-page instructions shown in the Buy Index flow. Funding options may vary by chain/wallet; USDC payout is supported when selling.

Is the wallet custodial?
No—self-custodial embedded smart wallet. You control funds; the flow simplifies execution.

How are fees shown?
Before confirming, you’ll see estimated gas, platform fee, max slippage, and minimum expected value. Nothing’s hidden.

How do I join the waitlist?
Head to the Token Metrics Indices hub and submit your email, or follow the waitlist CTA on the TM Global 100 page.

Security, Risk & Transparency

  • Self-custody: Embedded smart wallet keeps you in control.

  • 2-step clarity: Fees/slippage displayed before you confirm.

  • Transparent by design: Strategy modal, Holdings Treemap, and Transactions Log show what changed and why.

  • Regime logic limits: Signals can be wrong; rules aim for discipline, not perfection.

  • Regional notes: Availability and on-ramp options may vary by jurisdiction.

Crypto is volatile and can lose value. Past performance is not indicative of future results. This article is for research/education, not financial advice.

Conclusion + Related Reads

If you want broad market exposure without babysitting a portfolio, TM Global 100 gives you a rules-based, transparent way to participate in the upside and sit in stablecoins when conditions turn. The 90-second buy flow removes friction so you can focus on allocation—not logistics.

→ Join the waitlist to be first to trade TM Global 100.

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  • TM Global 100 strategy

  • Token Metrics Indices hub

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Crypto Index vs DIY Basket: Time, Slippage, and Missed Rebalances (2025)

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Building your own crypto basket sounds simple—until you’re juggling 10–50 tickers, spreadsheets, rebalance rules, spreads across chains, and the constant fear of missing regime turns. A crypto index removes that manual grind: TM Global 100 holds the top 100 assets when the market is bullish and moves fully to stablecoins when it’s not, with weekly rebalancing and full transparency of holdings and transactions. One click to buy, zero maintenance to keep up.

→ Join the waitlist to be first to trade TM Global 100.

TL;DR (snippet)

  • What it is: Rules-based index that holds top-100 in bull markets and moves to stablecoins in bear markets.

  • Why it matters: Weekly rebalances + transparent holdings and transaction logs.

  • Who it’s for: Hands-off allocators and active traders who want a disciplined core.

  • Next step: Join the waitlist to be first to trade TM Global 100.

Why Education / Indices Matters in October 2025

In 2025, time and execution quality are alpha. Manually maintaining a DIY basket multiplies complexity: fragmented liquidity, multiple wallets, chain fees, and coordination across exchanges—all while markets move. A rules-based index compresses that overhead into a single, auditable product with pre-declared logic and scheduled upkeep.

Definition (snippet-ready): A crypto index is a rules-based basket of digital assets that rebalances on a set schedule and/or when market conditions change, so you don’t have to micromanage individual coins.

Traders searching “DIY crypto basket,” “regime switching,” or “weekly rebalancing” usually want one thing: broad exposure without the constant maintenance and the regret of missed rebalances. That’s the exact problem TM Global 100 addresses with weekly updates and regime switching to stablecoins when signals turn bearish.

How the TM Global 100 Index Works (Plain English)

  • Regime switching: When signals are bullish, the index holds the top 100 by market cap; when bearish, it exits fully to stablecoins to wait for re-entry.

  • Weekly rebalancing: Aligns weights and constituents with updated rankings; regime changes can also trigger full portfolio shifts.

  • Transparency: Strategy modal explains selection & rebalancing rules; Holdings show a treemap/table; Index Transactions log all changes.

  • What you’ll see on launch: Price tile, signal gauge, tokens=100, “rebalances weekly,” contract address, and a Buy Index button with a ~90-second live demo flow showcased in launch content.

→ See the strategy and rules. (TM Global 100 strategy)

Benefits at a Glance (Why This Beats DIY)

  • Time saved: Replace multi-exchange shopping, wallet hops, and manual allocations with one click.

  • Fewer missed rebalances: Weekly cadence + visible transactions log reduce the cost of “I’ll do it tomorrow.”

  • Slippage discipline: Centralized execution with declared slippage/fee previews helps contain surprises vs piecemeal orders.

  • Regime switching: Codified “risk-off” behavior into stablecoins during bears, so you don’t have to white-knuckle exits. (No performance promises.)

  • Transparency: Strategy modal → Holdings treemap/table → Transactions log—see exactly what you hold and when it changed.

  • Proof cues (What you’ll see): Gauge (market signal) → Treemap (allocations) → Transactions Log → ~90-second Buy flow.

Step-by-Step: How to Get Early Access (Waitlist)

  1. Open the Token Metrics Indices hub and select TM Global 100.

  2. Add your email to the waitlist so you’re first in line at launch.

  3. (Optional) Connect your wallet—our embedded, self-custodial smart wallet supports major chains.

  4. On launch day, you’ll see the price tile, signal gauge, and “Buy Index.”

  5. Review the strategy, expected fees/slippage, and holdings; confirm to purchase.

  6. Track your position in My Indices; rebalances and any regime switches will appear in the transactions log.

→ Join the waitlist to be first to trade TM Global 100.

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want broad exposure without micromanaging? Consider a rules-based core that updates weekly.

  • Active Trader: Keep your bets, but use an index core that may step to stablecoins during bears.

  • TM Member/Prospect: Prefer transparent holdings, logs, and a simple buy/sell flow.

  • Time-Strapped Professional: Reduce ops work (wallets, slippage math, spreadsheets) to nearly zero.

  • New to Crypto: Learn with training wheels—strategy modal, tooltips, and clear risk language.

  • DIY Purist: If you enjoy tinkering with weights daily, DIY could still fit—just know weekly index upkeep is handled for you.

FAQs

What is a crypto index?
A rules-based basket of assets with scheduled rebalancing and, in TM Global 100’s case, a regime switch between top-100 exposure and stablecoins.

How often does the index rebalance?
Weekly, with additional full-portfolio switches when the market regime changes.

What triggers the move to stablecoins?
A proprietary market signal. When bearish, the index exits tokens into stablecoins and waits for a bullish re-entry.

Can I fund with USDC or fiat?
Funding options surface based on your connected wallet and supported chains; USDC payouts are supported on selling. (Stablecoin entry may come later.)

Is the wallet custodial?
No. The embedded wallet is self-custodial; you control funds.

How are fees shown?
The Buy flow shows estimated gas, platform fee, max slippage, and minimum expected value before you confirm.

How do I join the waitlist?
Visit the Indices hub → TM Global 100 → enter your email to get notified and first access at launch.

Security, Risk & Transparency

  • Self-custody: You transact via an embedded, self-custodial smart wallet.

  • Visibility: Strategy modal, Holdings treemap/table, and Transactions log make changes auditable.

  • Fee & slippage preview: See estimated gas, platform fee, max slippage, and minimum expected value before confirming.

  • Regime logic limits: Signals can be wrong; markets can gap; weekly rebalances can’t eliminate risk.

  • Region/chain notes: Supported chains surface in-product; availability and options may vary.

Crypto is volatile and can lose value. Past performance is not indicative of future results. This article is for research/education, not financial advice.

Conclusion + Related Reads

If you’ve ever missed a rebalance or watched slippage eat into returns, TM Global 100 can help standardize the work: rules-based logic, weekly updates, and a visible log of everything that changed. Join the waitlist to be first to trade, and make a disciplined index your core.

Related Reads:

→ Join the waitlist to be first to trade TM Global 100.

‍

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