Uploaded on Apr 7, 2020
Cryptocurrency forks, whether soft Fork or hard Fork, planned or Contentious is a topic of discussion. Forking can also also be seen as one of the core values of any-open source Cryptocurrency because it further enhances the security of the blockchain. https://bit.ly/2JNErzW
Guide to Forks_ Everything You Need to Know About Forks, Hard Fork and Soft Fork
Crypto World At Your Finger Tips!
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Guide to Forks: Everything You Need to
Know About Forks, Hard Fork and Soft
Fork
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What does Fork Mean? How
many types of Forks in are
there in Cryptocurrency?
What’s the difference
between Soft Fork and Hard
Fork? If you are also looking
answers for all these
questions, then you’ve come
to the right place.
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● Each software requires updates to keep them up to date with the changing
dynamics and to enhance their offering. In the dictionary of Crypto, it is
termed as “forks”.
● As you have heard already, Soft Fork and Hard Fork are two types of forks. If
put in simple words, the only difference between the two forks is that Soft
Fork also supports the prior version of the software whereas Hard Fork is a
permanent alteration which is not compatible with the earlier version.
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What Is Fork And How Many Types Are There?
● The crypto community is one big family, and each member of the chain is
known as a node. To co-exist, each node needs to align by a bunch of rules
called “protocols”. The basic rules of the protocol are decided by its creator.
The blockchain size, the mining rewards, etc., are selected for the
community, and they all then work together.
● So, Fork is a sort of upgrade or update in the program code of the blockchain
that modifies the working principle of the intact blockchain. Now, the
question is what is Soft fork and Hard fork in blockchain? These are two
types of Forks, one of which can be reversed, i.e. Soft Fork and the other is
backwards-incompatible, i.e. hard Fork.
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● A soft fork indicates the minuscule modifications made to the chain, whereas
as the name goes, hard fork changes are usually more substantial and radical.
● Contrary to popular belief, a forking is possible in all blockchain-based
platform and not just bitcoin. This is by virtue of the fact that all
cryptocurrencies are primarily based on the blockchain technology only. Each
particular block can be perceived as a crypto key which helps in pushing the
block memory further forward.
● Now, let’s know both the forks separately with past examples in the crypto
industry.
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1. What is Soft Fork In Crypto?
● The backwards-compatible upgrade to the protocol is called Soft
Fork, which signifies that even after the Fork that resulted in the
formation of a new chain, the earlier nodes can still process
transactions. However, the older blocks should follow the new rules.
● For instance, if according to the Fork, the block size of more than
3MB could no longer be processed, previous nodes would still be
able to push blocks that are less than 3MB in size.
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● Since the earlier nodes were not as capable as the latest, it
encourages it to update to the new protocol. But if a user is not
interested in using the advanced version, he can still continue using
the previous version but without the latest features.
● To perform a Soft Fork, the approval of the majority of members in the
chain is required.
● Some of the examples of Soft Fork that happened in the crypto
industry in the past are BIP (Bitcoin Improvement Proposal) and
P2SH.
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2. Hard Fork/Hard Fork In
Bitcoin
● Hard Fork is rather complicated than a soft fork as it implements
significant alterations to the protocol. These changes are so extreme
that it results in two distinct cryptocurrencies, one of which stays
unchanged and the other is an entirely new altered version.
● After the division, the transactions occurring the former blockchain
would not be identified by the new chain. This is why Hard Fork is
followed by many controversies and uncertainty in the community.
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● Hard Fork forces the community to pick sides which is one of the
reasons that it is implemented very rarely. However, if done correctly,
it can result in an efficient upgraded network with enhanced immunity.
● One of the well-recognized examples of the Hard Fork in Bitcoin is
Bitcoin Cash, (the split between Bitcoin and Bitcoin Cash) and the
split between Ethereum Classic and Ethereum, i.e. Ethereum Classic
Hard Fork.
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Types Of Hard
●FWohrilke mostly, Hard Forks brings controversies, it can also be planned
by the consent of the majority of members and developers in the
community. Hard Forksare of various types among which the two
most popular are Contentious Hard Fork and Planned Hard Fork.
● 1. Planned Hard Fork: The Fork which has been prepared from the
very starting of the project and is agreed upon by the majority of
developers with the consent of the community is called planned hard
Fork. Planned Hard Fork brings in a much better version of the
existing coin with enhanced chain abilities and features. In 2017,
Monero went through a hard fork which brought aRing Confidential
Transactions (RingCT), a new privacy feature to the chain.
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● Some other examples of planned hard Fork happened previously in
the crypto industry includes Ethereum Byzantium and Segregated
Witnesses (Segwit).
2. Contentious Hard Fork: A contentious hard fork occurs when there is
conflict within the space regarding the Fork that results in two different
chains, one unchanged and another, the better version of the original.
One of the major Hard Fork of Bitcoin performed in the past is Bitcoin
Cash. Crypto community had faced such controversies in the history
regarding extending the block size of Bitcoin to 8MB from 1MB, which
was deemed to make the transactions faster. Eventually, the
disagreement emerged as the hard Fork of the chain.
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Difference Between Soft Fork And Hard Fork
Both Soft Fork or hard Fork are implemented to upgrade the security and
enhance the features of the chain. Where soft Fork applies minor
changes to the blockchain, Hard Fork alters the protocol entirely, which
then cannot be reversed. It is the reason Hard Fork is not readily
accepted by the community, which becomes the reason for
controversies. Now that you know what is Fork, let’s see the d
ifference between Soft fork and Hard Fork.
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Conclusion
Cryptocurrency forks, whether soft Fork or hard Fork, planned or
Contentious is a topic of discussion. Forking can also also be seen as one
of the core values of any-open source Cryptocurrency because it further
enhances the security of the blockchain. Fork also provides the investors
as well as miners with a voice in case of disagreement with the
developers of the coin.
Sources
https://www.cryptoknowmics.com/news/guide-to-forks-everything-
you-need-to-know-about-forks-hard-fork-and-soft-fork
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