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Software crack can be a forged key, or a forged executable that bypasses the security requirement to install a legitimate software. There are many different ways to crack a software , earlier cracks used to be a key generator , that was able to generate duplicate key or a random key that appears to be authentic and bypass the authentication test program embedded in the main Application. But now a days cracks are more versatile , starting from cracking the executable to installing some additional DLLs that make the software look like original one.
Software cracking (known as «breaking» in the 1980s  ) is the modification of software to remove or disable features which are considered undesirable by the person cracking the software, especially copy protection features (including protection against the manipulation of software, serial number, hardware key, date checks and disc check) or software annoyances like nag screens and adware.
A crack refers to the means of achieving software cracking, for example a stolen serial number or a tool that performs that act of cracking.  Some of these tools are called keygen, patch, or loader. A keygen is a handmade product serial number generator that often offers the ability to generate working serial numbers in your own name. A patch is a small computer program that modifies the machine code of another program. This has the advantage for a cracker to not include a large executable in a release when only a few bytes are changed.  A loader modifies the startup flow of a program and does not remove the protection but circumvents it.   A well-known example of a loader is a trainer used to cheat in games.  Fairlight pointed out in one of their .nfo files that these type of cracks are not allowed for warez scene game releases.    A nukewar has shown that the protection may not kick in at any point for it to be a valid crack. 
The distribution of cracked copies is illegal in most countries. There have been lawsuits over cracking software.  It might be legal to use cracked software in certain circumstances.  Educational resources for reverse engineering and software cracking are, however, legal and available in the form of Crackme programs.
The first software copy protection was applied to software for the Apple II,  Atari 800, and Commodore 64 computers. [ citation needed ] . Software publishers have implemented increasingly complex methods in an effort to stop unauthorized copying of software.
On the Apple II, unlike modern computers that use standardized device drivers to manage device communications, the operating system directly controlled the step motor that moves the floppy drive head, and also directly interpreted the raw data, called nibbles, read from each track to identify the data sectors. This allowed complex disk-based software copy protection, by storing data on half tracks (0, 1, 2.5, 3.5, 5, 6. ), quarter tracks (0, 1, 2.25, 3.75, 5, 6. ), and any combination thereof. In addition, tracks did not need to be perfect rings, but could be sectioned so that sectors could be staggered across overlapping offset tracks, the most extreme version being known as spiral tracking. It was also discovered that many floppy drives did not have a fixed upper limit to head movement, and it was sometimes possible to write an additional 36th track above the normal 35 tracks. The standard Apple II copy programs could not read such protected floppy disks, since the standard DOS assumed that all disks had a uniform 35-track, 13- or 16-sector layout. Special nibble-copy programs such as Locksmith and Copy II Plus could sometimes duplicate these disks by using a reference library of known protection methods; when protected programs were cracked they would be completely stripped of the copy protection system, and transferred onto a standard format disk that any normal Apple II copy program could read.
One of the primary routes to hacking these early copy protections was to run a program that simulates the normal CPU operation. The CPU simulator provides a number of extra features to the hacker, such as the ability to single-step through each processor instruction and to examine the CPU registers and modified memory spaces as the simulation runs (any modern disassembler/debugger can do this). The Apple II provided a built-in opcode disassembler, allowing raw memory to be decoded into CPU opcodes, and this would be utilized to examine what the copy-protection was about to do next. Generally there was little to no defense available to the copy protection system, since all its secrets are made visible through the simulation. However, because the simulation itself must run on the original CPU, in addition to the software being hacked, the simulation would often run extremely slowly even at maximum speed.
On Atari 8-bit computers, the most common protection method was via «bad sectors». These were sectors on the disk that were intentionally unreadable by the disk drive. The software would look for these sectors when the program was loading and would stop loading if an error code was not returned when accessing these sectors. Special copy programs were available that would copy the disk and remember any bad sectors. The user could then use an application to spin the drive by constantly reading a single sector and display the drive RPM. With the disk drive top removed a small screwdriver could be used to slow the drive RPM below a certain point. Once the drive was slowed down the application could then go and write «bad sectors» where needed. When done the drive RPM was sped up back to normal and an uncracked copy was made. Of course cracking the software to expect good sectors made for readily copied disks without the need to meddle with the disk drive. As time went on more sophisticated methods were developed, but almost all involved some form of malformed disk data, such as a sector that might return different data on separate accesses due to bad data alignment. Products became available (from companies such as Happy Computers) which replaced the controller BIOS in Atari’s «smart» drives. These upgraded drives allowed the user to make exact copies of the original program with copy protections in place on the new disk.
On the Commodore 64, several methods were used to protect software. For software distributed on ROM cartridges, subroutines were included which attempted to write over the program code. If the software was on ROM, nothing would happen, but if the software had been moved to RAM, the software would be disabled. Because of the operation of Commodore floppy drives, one write protection scheme would cause the floppy drive head to bang against the end of its rail, which could cause the drive head to become misaligned. In some cases, cracked versions of software were desirable to avoid this result. A misaligned drive head was rare usually fixing itself by smashing against the rail stops. Another brutal protection scheme was grinding from track 1 to 40 and back a few times.
Most of the early software crackers were computer hobbyists who often formed groups that competed against each other in the cracking and spreading of software. Breaking a new copy protection scheme as quickly as possible was often regarded as an opportunity to demonstrate one’s technical superiority rather than a possibility of money-making. Some low skilled hobbyists would take already cracked software and edit various unencrypted strings of text in it to change messages a game would tell a game player, often something considered vulgar. Uploading the altered copies on file sharing networks provided a source of laughs for adult users. The cracker groups of the 1980s started to advertise themselves and their skills by attaching animated screens known as crack intros in the software programs they cracked and released. Once the technical competition had expanded from the challenges of cracking to the challenges of creating visually stunning intros, the foundations for a new subculture known as demoscene were established. Demoscene started to separate itself from the illegal «warez scene» during the 1990s and is now regarded as a completely different subculture. Many software crackers have later grown into extremely capable software reverse engineers; the deep knowledge of assembly required in order to crack protections enables them to reverse engineer drivers in order to port them from binary-only drivers for Windows to drivers with source code for Linux and other free operating systems. Also because music and game intro was such an integral part of gaming the music format and graphics became very popular when hardware became affordable for the home user.
With the rise of the Internet, software crackers developed secretive online organizations. In the latter half of the nineties, one of the most respected sources of information about «software protection reversing» was Fravia’s website.
Most of the well-known or «elite» cracking groups make software cracks entirely for respect in the «Scene», not profit. From there, the cracks are eventually leaked onto public Internet sites by people/crackers who use well-protected/secure FTP release archives, which are made into full copies and sometimes sold illegally by other parties.
The Scene today is formed of small groups of skilled people, who informally compete to have the best crackers, methods of cracking, and reverse engineering.
The High Cracking University (+HCU), was founded by Old Red Cracker (+ORC), considered a genius of reverse engineering and a legendary figure in RCE, to advance research into Reverse Code Engineering (RCE). He had also taught and authored many papers on the subject, and his texts are considered classics in the field and are mandatory reading for students of RCE. 
The addition of the «+» sign in front of the nickname of a reverser signified membership in the +HCU. Amongst the students of +HCU were the top of the elite Windows reversers worldwide.  +HCU published a new reverse engineering problem annually and a small number of respondents with the best replies qualified for an undergraduate position at the university. 
+Fravia was a professor at +HCU. Fravia’s website was known as «+Fravia’s Pages of Reverse Engineering» and he used it to challenge programmers as well as the wider society to «reverse engineer» the «brainwashing of a corrupt and rampant materialism». In its heyday, his website received millions of visitors per year and its influence was «widespread». 
Nowadays most of the graduates of +HCU have migrated to Linux and few have remained as Windows reversers. The information at the university has been rediscovered by a new generation of researchers and practitioners of RCE who have started new research projects in the field. 
The most common software crack is the modification of an application’s binary to cause or prevent a specific key branch in the program’s execution. This is accomplished by reverse engineering the compiled program code using a debugger such as SoftICE,  x64dbg, OllyDbg,  GDB, or MacsBug until the software cracker reaches the subroutine that contains the primary method of protecting the software (or by disassembling an executable file with a program such as IDA). The binary is then modified using the debugger or a hex editor or monitor in a manner that replaces a prior branching opcode with its complement or a NOP opcode so the key branch will either always execute a specific subroutine or skip over it. Almost all common software cracks are a variation of this type. Proprietary software developers are constantly developing techniques such as code obfuscation, encryption, and self-modifying code to make this modification increasingly difficult. Even with these measures being taken, developers struggle to combat software cracking. This is because it is very common for a professional to publicly release a simple cracked EXE or Retrium Installer for public download, eliminating the need for inexperienced users to crack the software themselves.
A specific example of this technique is a crack that removes the expiration period from a time-limited trial of an application. These cracks are usually programs that alter the program executable and sometimes the .dll or .so linked to the application. Similar cracks are available for software that requires a hardware dongle. A company can also break the copy protection of programs that they have legally purchased but that are licensed to particular hardware, so that there is no risk of downtime due to hardware failure (and, of course, no need to restrict oneself to running the software on bought hardware only).
Another method is the use of special software such as CloneCD to scan for the use of a commercial copy protection application. After discovering the software used to protect the application, another tool may be used to remove the copy protection from the software on the CD or DVD. This may enable another program such as Alcohol 120%, CloneDVD, Game Jackal, or Daemon Tools to copy the protected software to a user’s hard disk. Popular commercial copy protection applications which may be scanned for include SafeDisc and StarForce. 
In other cases, it might be possible to decompile a program in order to get access to the original source code or code on a level higher than machine code. This is often possible with scripting languages and languages utilizing JIT compilation. An example is cracking (or debugging) on the .NET platform where one might consider manipulating CIL to achieve one’s needs. Java’s bytecode also works in a similar fashion in which there is an intermediate language before the program is compiled to run on the platform dependent machine code.
Advanced reverse engineering for protections such as SecuROM, SafeDisc, StarForce, or Denuvo requires a cracker, or many crackers to spend much time studying the protection, eventually finding every flaw within the protection code, and then coding their own tools to «unwrap» the protection automatically from executable (.EXE) and library (.DLL) files.
There are a number of sites on the Internet that let users download cracks produced by warez groups for popular games and applications (although at the danger of acquiring malicious software that is sometimes distributed via such sites). [ citation needed ] Although these cracks are used by legal buyers of software, they can also be used by people who have downloaded or otherwise obtained unauthorized copies (often through P2P networks).
Definition — What does Crack mean?
A crack is a methodology for breaking into a secured computer system. It was coined in the 1980s by hackers who wanted to disassociate themselves from the more malicious practices carried out by hackers. A cracker’s sole purpose is to break into a system, gaining fulfillment from being able to “crack” the system’s security shield. Real hackers go beyond just opening up a system. They go inside the system to gain knowledge and information for malicious intent, playful pranks and profiteering.
Techopedia explains Crack
A software crack may also circumvent or serialize a piece of commercial software. Commercial software often uses keys to authenticate the user and software during instalation. Without the key, the software is unusable. The software crack is used to get past this security feature by generating a key. Or, it may change a file to trick the software into allowing the cracker to use it as if the correct serial key had already been entered. The latter is the most distributed methodology for cracking software licenses.