Homework on Soft and Hard Forks - Questions

[Hallow]

1. What is the difference between a softfork and a hardfork?
   Softforks don’t split the chain and do not require 100% of the nodes to be updated.
   Also some confusions is made with non-updated nodes validating transactions from updated nodes.
2. What are some of the reasons why you would do a hardfork?
   You would want to create a new currency.
   You want to give the community the choice on how to move forward.
3. What are some of the risks with performing a hardfork?
   Splitting the hash power resulting in a security risk.
   Splitting the community

[PetraH]

1)What is the difference between a softfork and a hardfork?

At softfork rules get contracted (valid transaction become invalid) and at hardfork rules get expanded (invalid transaction become valid)

2)What are some of the reasons why you would do a hardfork?
To update, to make a new coin

3)What are some of the risks with performing a hardfork?
Less security, hash power decreases

[Sharon]

1. What is the difference between a softfork and a hardfork?
   A hardfork is an update that makes previously invalid blocks valid (expansion of rules), whereas a softfork is an update that makes previously valid blocks invalid (contraction of rules).

2. What are some of the reasons why you would do a hardfork?
   When you want to expand the rules.
   When the community is divided on the tech or the future
   To create a new currency/ project

3. What are some of the risks with performing a hardfork?
   A hardfork splits the commmunity, also the hash rate thereby reducing security

[Henke]

1. A hard fork is an update of the rules where previous invalid blocks become valid, it is not compatible with the previous state of the chain whereas a soft fork makes previously valid blocks invalid and is more compatible.
   2.If you need to improve scalability by increasing the block size, if you need to make changes in the script that is not supported by the present chain.
2. The hash power is reduced because they will then be mining at a different protocol, and thereby lowering the security of the system, it will create a new currency thereby weakening Bitcoin.

[jayharden1]

1.	What is the difference between a soft fork and a hard fork? 

Soft Forks make previously valid blocks invalid and typically lead to a splitting of the chain that resolves depending on the ratio of Nodes that adopt an update. Hard forks make previously invalid blocks valid and regardless of the ratio of Nodes that adopt the change create a spiltting of the chain. Soft Forks constrict the criteria for inclusion whereas Hard Forks expand the criteria for inclusion

2.	What are some of the reasons why you would do a hardfork?  

• to make the update clear

• split the chain

• create a new currency

  3. What are some of the risks with performing a hardfork?

• All nodes may not necessarily update to the new rule set leading to a split in the community

• By splitting the community, the Hash Power amongst the collective of Nodes is split which can lead to a reduction in security

[Fox_Hound]

Q1. What is the difference between a softfork and hardfork?
A1. A hardfork is an increase to the consensus rules & a softfork is a decrease to the consensus rules. A hardfork split the community and the softfork does not.

Q2. What are some of the reasons why you would do a hardfork?
A2. To update new rules to the protocol, or/and to create a new currency with different rules applied.

Q3. What are some of the risks with performing a hardfork?
A3. Split in the community and the drop of hashing power lowing the security in the network.

[JuniorB]

1. A hard fork is an expansion of the rule set which makes previous invalid blocks valid. Soft fork is an contraction of the rule set which makes previous valid blocks invalid.
2. Reasons can be such as correcting security issues, add functonality.
3. Risk is to split the community and the blockchain into two diffrent currencies, that will reduce the hash rate because a number of nodes will be mining on a different protocol which has a the consensus.

[DavidV]

1. What is the difference between a soft fork and a hard fork?.

A hardfork is an expansion of the rule set in the blockchain where a soft fork is a contraction of this ruleset. This means that in a hardfork will make previously INVALID block VALID while a in soft fork the certian previous VALID block become invalid.

2. What are some of the reasons why you would do a hard-fork?

To expand the capability of the blockchain, giving it new functionality.

3. What are some of the risks of performing a hard-fork?

It will create a new chain that can reduce the hash-power making the network less secure. It also splits up the community. As it creates a new currency it can change the value of the two currencies then in existence reducing the one and increasinf the other.

[tenbad]

Homework on Soft and Hard Forks - Questions

1. A hard fork is when the rule set expands to allow blocks that would previously have been considered invalid. A soft fork is when the rule set contracts to make previously valid blocks invalid.
2. A hard fork is necessary to make some important changes to the system that do not fit into the currently existing ruleset.
3. A hard fork will result in a reduction in the hash power since it is at least temporarily split between 2 different chains. This means a less secure network. Furthermore, if significant disagreements exist, it could result in a split chain and a new coin.
   What are some of the risks with performing a hardfork?

[Snoovy]

What is the difference between a softfork and a hardfork?

Hard fork is an update that makes previous invalid blocks valid
Soft Fork is an update that makes previous valid blocks invalid
What are some of the reasons why you would do a hardfork?
Hard Fork occurs when update to consensus rules required to improve network stability, speed,security, transparency, or an innovation is discovered, or one wants to make a new coin
What are some of the risks with performing a hardfork?
Hard forks require 100% of network compliance or theres a risk of splitting the community, and making a permanent fork, there is latency in updating, which could cause confusion for a while, you reduce security when hash power is compromised while the nodes are all updating in the fork

[NaraneJr]

1. What is the difference between a softfork and a hardfork?
2. What are some of the reasons why you would do a hardfork?
3. What are some of the risks with performing a hardfork?

A.1. Softfork is an update of the consensus that makes previous valid block sizes invalid. Overall, softfork is a contraction of the rule set. For example, by consensus up to 1MB block sizes are valid onto the network. A new rule set update states that only up to 500KB block sizes are valid onto the network. If the majority 51% accept the new rule set update then a softfork takes place; otherwise, the fork does not succeed because 500KB block sizes are still valid under the old rule set of valid 1MB block sizes.

Hardfork is an update of the consensus that makes previous invalid block sizes valid. Overall, hardfork is an expansion of the rule set. For example, by consensus up to 1MB block sizes are valid onto the network. A new rule set update states that only 2MB block sizes are valid onto the network. If the majority of 100% accept the new rule set then a fork does not succeed; otherwise, a hardfork takes place because one part remains loyal to the old rule set of valid 1MB block sizes and the other part accepts the new rule set of only 2MB block sizes are valid—the community splits.

Note: A fork only happens if there are two versions of truth. The consensus involves the participation of both miners and nodes to accept or reject the update of the rule set.

A.2. One of the reasons for a hardfork is the expansion of the rule set. For instance; as the majority of the world’s population is outside the crypto space, it is important to listen to the needs of those who would like to join but the rule set (consensus mechanism) might put them off. However, this might come with some tradeoffs and risks.

A.3. Some of the risks with a hardfork is a split community which results in a split Hash power, therefore compromising security as the number of participants on each chain decreases.

[jblazquez]

1. What is the difference between a softfork and a hardfork?

First, Hard forks are updates that increase the size of the blocks after the update. This makes previous not valid blocks, now can be valid. On the contrary, Soft Forks are updates that decrease the size of the blocks after the update. This makes previous valid blocks, now can’t be valid.

Second, Hard Forks split the chain in two, but Soft Forks not necessarily split the chain in two. It depends on where the majority of PoW is. If the new update has the majority of PoW, then the chain will not be splitted.

Third, Hard Forks Split the community in two, but Soft Forks not necessarily split the community in two. It will depend on where the majority of Pow is.

2. What are some of the reasons why you would do a hardfork?

Hard Fork happens when the protocol has an update that changes the consensus rules to increase the block sizes ( block A < block B). These updates of the protocol are done because some nodes consider that the new rules are going to be better than the originals. There are different reasons why some nodes prefer to migrate to a new chain. First hard forks expand the size of the block, this will increase the storage of the transaction per block. Second it leads to reduction of fees paid per transaction and increases the efficiency of the network. Third, it creates a new protocol with a new coin, mempool and transactions that to some node and miners are better.

3. What are some of the risks with performing a hardfork?

When Hard Forks happen it splits the chain in two, the updated nodes and the not updated ones. This means that nodes and miners are also split in two and the hash power got split too. When this happens the hash power is reduced because there are less miners and the difficulty of the bitcoin protocol will decrease. Which leads to a higher target and lower security.

[DaleH]

1. A softfork makes previously valid blocks invalid while a hardfork makes previously invalid blocks valid.
2. A hardfork is maintained by consensus among the miner community. Basically miners have a choice as to which fork to be a part of based upon whether they update. A softfork update can be forced upon individual miners if a majority of miners decide to update.
3. A hardfork can result in a reduction of hash power and split communities.

[thurendous]

1. What is the difference between a softfork and a hardfork?

• The difference is if it is a expansion or contraction.

1. What are some of the reasons why you would do a hardfork?

• When you want to a complete change to the protocol, usually it is a expansion of the rule set. However it has some pros and cons.

1. What are some of the risks with performing a hardfork?

• When you do a hard fork, it will split the community, split the chain.

[Alex_Cheung]

1. Soft forks makes a change that allows previously valid blocks to become invalid, changes that can work within the current ruleset. While hard forks makes a change that makes previously invalid blocks valid.

2. A hardfork may occur when there is a change in consensus.

3.A hardfork can split a community, splitting hash power and creating a less secure system.

[zlr1984]

1. What is the difference between a softfork and a hardfork?
   A soft fork is a change in rules whereby the new rules become a sub-set of the conditions accepted by the old rules. The previous valid blocks in the old rules become invalid. It is a contraction of the rule set.
   A hard fork is a change in rules whereby the new rule accepts conditions that are previously rejected by the old rules. The previous invalid blocks in the old rules become valid. It is an expansion of the rule set.

2. What are some of the reasons why you would do a hardfork?
   People do a Hard Fork in order to improve network stability, speed, security, transparency.

3. What are some of the risks with performing a hardfork?
   A hard fork requires 100% consensus among all the nodes in the network in order to be 100% effective. Otherwise the network community will split, resulting in lower hash power and reduced network security.

[shane23]

1. a hard for makes previously invalid blocks valid, example would be making block size bigger that previously excepted… soft fork would be the opposite so no the chain would accept smaller blocks which would still fit in the parameters of the old block definition.
2. change in consensus within the community, to expand the ability of the network.
3. spit in community, creating a new currency and reducing hash power of the network.

[meinolf]

1. softfork turns previously valid blocks into invalid. hardfork vice versa
2. when you need complete consensus / new items
3. split of community and thus hash power

[Jelle_Buskermolen]

1. What is the difference between a softfork and a hardfork?
   A softfork makes a previously valid block invalid. A hardfork makes a previously invalid block valid.
2. What are some of the reasons why you would do a hardfork?
   When there has to be a change in consensus
3. What are some of the risks with performing a hardfork?
   In order for a hardfork to succeed completely it needs a 100% consensus from the network. Otherwise there will be a split in the chain, which results in a lower hash power. This will reduce the secuirity of the network

[C.shepherd]

1. A hardfork is an update that makes previously invalid blocks valid. It is an expansion of the rule set. A softfork is an update that makes previously valid blocks invalid. It is a contraction of the rule set.

2. A hardfork is a clear update to the network. Those who accept the update can add blocks to the new chain and those who don’t can continue adding blocks to the old chain. There is no confusion.

3. If only part of the network accepts the hardfork update, it will result in a split of the network which causes a reduction of hash power. This makes the network less secure.