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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Regime Switching in Crypto: Participate in Upside, Sit Out Drawdowns (2025)

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Timing crypto cycles is hard. Volatility cuts both ways: you want broad upside when markets run, and you want the discipline to step aside when trend and liquidity flip. That’s exactly what a regime switching crypto index does—using rules to allocate into the market during bullish conditions and to stablecoins during bearish conditions. TM Global 100 is our flagship implementation: a rules-based, top-100 crypto index when bullish that moves fully to stablecoins when not, with weekly rebalancing and transparent holdings/transactions you can verify at a glance. It’s built for people who want market exposure without micromanaging tokens—or their emotions.

→ 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 crypto assets in bull markets and moves to stablecoins in bear markets.
Why it matters: Weekly rebalances + transparent holdings and a transactions log encourage discipline and clarity.
Who it’s for: Hands-off allocators and active traders who want a robust, rules-driven core.
Next step: Join the waitlist to be first to trade TM Global 100.

Why Education / Indices Matters in October 2025

Crypto runs in regimes—multi-month stretches of risk-on momentum followed by drawdowns that can erase gains quickly. Searchers looking for “regime switching,” “weekly rebalancing,” or “crypto index” want a practical framework that’s simple to follow and easy to execute.

Definition (for snippets): Regime switching in crypto is a rules-based method that changes portfolio exposure based on market conditions, typically rotating between a diversified token basket in uptrends and stablecoins in downtrends.

Why now:

  • Cycle asymmetry: Capturing trend while limiting drawdown time can meaningfully affect long-term outcomes.

  • Operational burden: DIY rebalancing across dozens of tokens is error-prone; a standardized process reduces slippage, delays, and missed changes.

  • Clarity: Real-time transparency over what you hold, why you hold it, and when it changed.

How the TM Global 100 Index Works (Plain English)

  • Regime switching:


    • Bullish: Hold the top-100 by market cap across sectors and chains.

    • Bearish: Exit to stablecoins and wait for a bullish re-entry signal.

  • Weekly rebalancing:


    • Reflects updated market-cap rankings and liquidity/supply thresholds. Constituents and weights update on schedule.

  • Transparency:


    • Strategy modal with rules; Gauge → Treemap → Transactions Log so you can verify what you own and what changed.

  • What you’ll see on launch:


    • Price tile, 100 tokens, “rebalances weekly,” one-click Buy Index flow with an embedded, self-custodial wallet.

Soft CTA: See the strategy and rules.

Benefits at a Glance (Why This Beats DIY)

  • Rules, not vibes: Mechanized regime logic aims to reduce emotional whipsaws.

  • Fewer ops mistakes: One flow vs. dozens of manual trades across chains/exchanges every rebalance.

  • Switching discipline: Full rotation to stablecoins on bearish signals—no second-guessing.

  • Slippage & fees surfaced: Estimated gas, platform fee, and minimum expected value shown before you confirm.

  • See everything: Holdings treemap/table and transactions log keep you informed.

  • Weekly cadence: A predictable update rhythm that keeps the index aligned with the market.

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

  1. Open the hub: Visit the Token Metrics Indices hub.

  2. Find TM Global 100: Open the index card and tap Join Waitlist.

  3. Add email: Enter the address you want us to notify at launch.

  4. (Optional) Connect wallet: Pre-connect to streamline the 90-second Buy flow on day one.

  5. Launch day: You’ll receive an email when trading opens; the index page shows Gauge → Strategy → Holdings so you can review in seconds.

  6. Buy in ~90 seconds: Confirm wallet, review fees/slippage, and Buy Index. Track your position in My Indices.

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

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want broad market beta when it’s worth it, and stables when it isn’t.

  • Active Trader: Keep this as a rules-based core, take satellite bets around it.

  • TM Member/Prospect: Prefer research-backed rules and transparent logs over discretionary churn.

  • New to Crypto: Want a single button, clear rules, and weekly updates.

  • Time-Strapped Pro: Minimize ops overhead; maximize clarity.

  • Skeptical of “forecasts”: Prefer process over prediction—signals + scheduled rebalances.

FAQs

What is a regime switching crypto index?
A rules-based portfolio that allocates to a diversified token basket in bullish regimes and rotates to stablecoins in bearish regimes, based on pre-defined signals. TM Global 100 implements this with a top-100 universe and a full stablecoin switch in bears.

How often does the index rebalance?
Weekly, to reflect updated rankings and liquidity thresholds; regime changes can occur outside the weekly cycle when the signal flips.

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

Can I fund with USDC or fiat?
You purchase through an embedded, self-custodial wallet supporting major chains; funding and settlement options surface based on your wallet and chain. USDC payouts are supported when selling. (Region/asset availability may vary.)

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

How are fees shown?
Before confirming, you’ll see estimated gas, platform fee, max slippage, and minimum expected value.

How do I join the waitlist?
Visit the Token Metrics Indices hub, open TM Global 100, and tap Join Waitlist. You’ll be notified at launch.

Security, Risk & Transparency

  • Self-custody first: Embedded smart wallet; you control keys and funds.

  • Clarity before commit: Fees, slippage, and holdings previewed pre-trade.

  • Logs on-page: Strategy, holdings, and transactions history are visible.

  • Regime logic limits: Signals can be wrong; sudden gaps and spreads can impact outcomes.

  • Geography: Availability and supported rails may differ by region.

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 a disciplined, transparent way to gain broad crypto exposure while sitting out drawdowns, TM Global 100 was built for you. It’s rules-based, weekly-rebalanced, and visible down to the transaction log—so you can focus on allocation, not anxiety.

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

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If you’ve ever tried to “own the market” in crypto, you know the pain: picking coins, timing rotations, chasing listings, and rebalancing blends research with stress. A crypto index solves this by tracking a defined basket with clear rules—so you don’t babysit a watchlist 24/7. TM Global 100 extends that idea with a rules-based approach: it holds the top 100 assets when the market is bullish, and fully moves to stablecoins when it isn’t, with weekly rebalancing and transparent holdings and transactions. That means less micromanagement, more discipline, and a single place to see what you own and why.

→ 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.

  • Why it matters: Weekly rebalances + transparent holdings and transaction logs keep exposure aligned with market structure.

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

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

Why crypto indices matter in October 2025

Search interest around “what is a crypto index” keeps rising because investors want broad exposure without constant token-picking. Indices meet informational → commercial → transactional intent in one flow: learn the concept, see the rules, then invest. For traders, weekly rebalancing reduces drift from fast-changing market-cap rankings; for allocators, a regime switch (tokens ↔ stablecoins) can help avoid sitting exposed through deep drawdowns. In one sentence: A crypto index is a rules-based basket of crypto assets that rebalances on a schedule to maintain a defined exposure.

How the TM Global 100 Index Works (Plain English)

  • Regime switching:
    Bull: hold the top 100 by market cap.
    Bear: exit to stablecoins and wait for a bullish re-entry signal.

  • Weekly rebalancing:
    Updates weights and constituents to reflect the current top-100 ranking.

  • Transparency:
    Strategy modal (rules), Gauge → Treemap → Transactions Log, and an index price tile with “rebalances weekly” note.

  • What you’ll see on launch:
    Price tile, token count (100), one-click Buy Index, and post-buy visibility in My Indices.

Soft CTA: See the strategy and rules.

Benefits at a Glance (Why This Beats DIY)

  • Time saved: No weekly scramble across exchanges to add/remove names after rankings shift.

  • Lower drift risk: Scheduled weekly rebalances help keep the basket aligned with the evolving top-100.

  • Switching discipline: Automated bear-market stablecoin posture enforces a plan when emotions run hot.

  • Fewer missed moves: Rotations into/out of constituents are handled by rules, not vibes.

  • Single dashboard: Gauge → Treemap → Transactions Log show what changed and when.

  • One-click execution: Fund, confirm, done—no manual multi-token shopping cart.

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

  1. Go to the Token Metrics Indices hub.

  2. Open TM Global 100 and tap Join Waitlist; add your email.

  3. (Optional) Connect wallet so you’re set for the 90-second Buy flow at launch.

  4. We’ll notify you on go-live—you’ll see the price tile, signal Gauge, and Buy Index.

  5. Preview fees/slippage, confirm, and your position appears in My Indices with full transactions history.

  6. Revisit weekly to see updated holdings and rebalances; we log everything.

  7. Repeat the waitlist CTA to share with a friend who wants “one-click top-100.”

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

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want market exposure without coin-picking? Consider Global 100.

  • Active Trader: Want a rules-based core that moves to stables in bears while you run side bets?

  • TM Member/Prospect: Prefer transparent holdings & logs you can actually audit.

  • Rebalance-Skeptic: You know drift is real; weekly cadence may help keep you aligned.

  • Risk-Aware: Like the idea of stablecoin mode when signals flip—no promises, just rules.

  • Time-Poor, Thesis-Rich: You believe in crypto’s upside but can’t manage 100 positions manually.

FAQs

What is a crypto index?
A crypto index is a rules-based basket that tracks a defined set of assets (e.g., the top-100 by market cap), with a scheduled rebalance to keep exposure aligned. Global 100 applies that idea and adds a regime switch to stablecoins.

How often does TM Global 100 rebalance?
Weekly. Constituents and weights update on schedule; if the market regime changes, the portfolio can switch between tokens and stablecoins outside that cadence.

What triggers the move to stablecoins?
A proprietary market signal. Bullish: hold the top-100 basket. Bearish: exit to stablecoins and wait for a re-entry signal.

Can I fund with USDC or fiat?
At launch you’ll see wallet-funding options supported by the embedded smart wallet and supported chains; USDC payouts are available on selling. Details show in the Buy/Sell flow.

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

How are fees shown?
Before confirming you’ll see estimated gas, platform fee, max slippage, and minimum expected value.

How do I join the waitlist?
Visit the Token Metrics Indices hub, open TM Global 100, and tap Join Waitlist. We’ll email when trading opens.

Security, Risk & Transparency

  • Self-custody: Embedded smart wallet; you control keys.

  • Clear rules: Strategy modal explains selection criteria and rebalancing methodology.

  • Full visibility: Holdings Treemap, Table, and Transactions Log show every change after rebalances/regime switches.

  • Fee clarity: Buy flow shows fees and slippage before you confirm.

  • Regime logic limits: Signals can be wrong; no performance is promised.

  • Regional notes: Availability may vary by region and wallet support at launch.

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 herding coins—or a disciplined core you can trust to step aside in bad regimes—TM Global 100 was built for you: rules-based, weekly rebalancing, stablecoins when warranted, and full transparency. Join the waitlist now to be first to trade on launch.

Related Reads:

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Research

Predictable Crypto: The Index That Moves to Stablecoins When It Should (2025)

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7 min
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If you’ve ever wished for a crypto index that participates broadly in bull markets yet steps aside when risk turns south, this is it. TM Global 100 is a rules-based index that holds the top 100 crypto assets when our market signal is bullish—and moves fully to stablecoins when it isn’t. It rebalances weekly, shows transparent holdings and transaction logs, and can be purchased in one click with an embedded wallet. That’s disciplined exposure, minus the micromanagement.

→ 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 stablecoins in bear markets.

  • Why it matters: Weekly rebalances + full transparency (strategy, holdings, transactions).

  • 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

Two things define this cycle: speed and uncertainty. Narratives rotate in weeks, not months, and individual-coin risk can swamp portfolios. Indices let you own the market when conditions warrant, while a regime-switching approach aims to sidestep drawdowns by cutting risk to stablecoins. (A crypto index is a rules-based basket tracking a defined universe—here, a top-100 market-cap set—with scheduled rebalances.)

For searchers comparing “regime switching,” “weekly rebalancing,” and “top 100 crypto index,” TM Global 100 offers one simple answer: rules, not vibes—plus a transparent page that shows what you own and when it changes.

‍

How the TM Global 100 Index Works (Plain English)

  • Regime switching:
    Bull: hold the top 100 by market cap.
    Bear: move fully to stablecoins, wait for a bullish re-entry signal.

  • Weekly rebalancing: Updates weights and constituents to reflect the current top-100 list.

  • Transparency: A Strategy modal explains rules; a Gauge shows the live market signal; Holdings appear in Treemap + Table; and every rebalance/transaction is logged.

  • What you’ll see on launch:
    Price tile • “100 tokens” • “rebalances weekly” • one-click Buy Index flow.

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

Benefits at a Glance (Why This Beats DIY)

  • Time back: No more tracking 100 tickers or manual reweights. The weekly job runs for you.

  • Discipline on drawdowns: The stablecoin switch enforces risk management when the signal turns.

  • Less execution drag: One embedded wallet checkout vs. dozens of small trades that add slippage and fees.

  • See everything: Gauge → Treemap → Transactions Log—know what you hold, and what changed.

  • Own the market when it’s worth it: Capture broad upside in bullish regimes with top-100 breadth.

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

  1. Open the Token Metrics Indices hub. (Token Metrics Indices hub)

  2. Tap TM Global 100 and select Join Waitlist.

  3. (Optional) Connect wallet to preview the one-click Buy flow and funding options.

  4. On launch, you’ll receive an email and in-app prompt.

  5. Click Buy Index → review fees/slippage/holdings → confirm. Most users finish in ~90 seconds.

  6. Track your position under My Indices with real-time P&L and a full transactions history.

→ 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 TM Global 100 for rules-based coverage.

  • Active Trader: Prefer a disciplined core that exits to stables while you run satellite bets.

  • TM Member/Prospect: Already read our research? This turns it into an actionable, one-click index.

  • New to On-Chain: Embedded wallet + clear fees and logs lower the operational lift.

  • Skeptical of Black Boxes: Full strategy copy, holdings, and rebalance logs are visible—no mystery knobs.

FAQs

What is a “crypto index”?
A rules-based basket that tracks a defined universe (here: top-100 market cap), with scheduled rebalances and clear inclusion criteria.

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. Bullish: hold top-100. Bearish: move fully to stablecoins until re-entry.

Can I fund with USDC or fiat?
You’ll use the embedded wallet and supported on-chain assets; USDC is supported for selling. Funding options surface based on chain/wallet at checkout.

Is the wallet custodial?
No. It’s an embedded, self-custodial smart wallet—you control funds.

How are fees shown?
At checkout, you’ll see estimated gas, platform fee, max slippage, and minimum expected value before confirming.

How do I join the waitlist?
Visit the Indices hub, open TM Global 100, and tap Join Waitlist; we’ll notify you at launch. (Token Metrics Indices hub)

Security, Risk & Transparency

  • Self-custody: Embedded smart wallet; you hold keys.

  • Operational clarity: Strategy modal, Holdings treemap/table, and Transactions log.

  • Fee & slippage preview: All shown before you confirm.

  • Regime logic limits: Signals can be wrong; switching can incur spreads and gas.

  • Region notes: Chain and asset support may vary by user wallet and 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 upside when it’s worth it and stablecoins when it’s not—with weekly rebalances, transparent logs, and a 90-second buy flow—TM Global 100 was built for you. Join the waitlist now and be first to trade at launch.

Related Reads

  • TM Global 100 strategy (TM Global 100 strategy)

  • Token Metrics Indices hub (Token Metrics Indices hub)

  • Best Cryptocurrency Exchanges 2025 (Token Metrics article)

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