Homework on Soft and Hard Forks - Questions

[REGO350]

1. A softfork update contracts rule set, making previously valid blocks invalid. On the other hand, a hardfork update expands rule set, making previously invalid blocks valid.

2. If you want to for example, make the block size bigger. The bigger the block size, the more transaction that can be confirmed in one block, reducing less transaction time and/or fee.

3. The biggest risk is the hash power split. Meaning that the network can be less secure.

[Paul_Brisk]

@ivan

Homework on Soft and Hard Forks - Questions

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?

1. A softfork is where the consensus rules for building blocks are contracted or reduced, which means that blocks that may have been previously valid under the old rules are made invalid under the new rules. The key thing to note for softfork, is that the majority wins out, and the blockchain will continue with no forks using the rules that the majority implements.

A hardfork is where the consensus rules for building blocks are expnaded, which means that blocks that were previously invalid under the old rules, are made valid under the new rules (and blocks that were valid under the old rules, remain valid under the new rules). This change can lead to a hard fork in the blockchain where those miners that do not upgrade to the new rules stay on their own fork, and those miners that upgrade, will form a new chain. Miners that do not upgrade can mine on either fork (backward compatability). A hardfork can lead to a product split - i.e. new crypto currency created.

2. A hardfork might be desirable because you add new functionality, create new features, perform an upgrade, create a new product etc.

3. The risks is that you split your miners, so reduce hashpower available to both chains, and therefore reduce security.

[UnSt0pP4bL3]

1. What is the difference between a softfork and a hardfork?
   = Soft fork is contraction of the rule set, makes previously valid blocks invalid.
   = Hard Fork is expansion of the rule set, makes previously invalid blocks valid.
2. What are some of the reasons why you would do a hardfork?
   = It is clear and democratic. Provides new currency. Improves performance
3. What are some of the risks with performing a hardfork?
   = It splits the chain and community. Hash power split reduces security.

[GreggyB]

What is the difference between a softfork and a hardfork?

• A softfork is a contraction of the rule set, conversely, a hardfork is an expansion of the rule set.

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

• You introduce new software functionality that is not backwards compatible e.g. changed data structures. A consensus rules change.

What are some of the risks with performing a hardfork?

• Splits the community e.g. Segwit address, some nodes just can’t update as they don’t understand the new tx format. Note that a change in the Rule Set without compatibility issues is a consensus change (no community split).

• Causes a chain split.

• Causes a hash power split.

• Lower security.

[TheHoff]

1. What is the difference between a softfork and a hardfork?
   SF - make previously valid blocks invalid
   HF - Makes previously invalid blocks valid
2. What are some of the reasons why you would do a hardfork?
   Democratic, consensus, clear
3. What are some of the risks with performing a hardfork?
   Split the community, decrease hash rate

[NotoriousNMG]

1. HF’s make previously invalid blocks valid. SF’s make previously valid blocks invalid.
2. If you wanted to increase block size to improve transaction speed.
3. The blockchain will split, which will also reduce hash power and therefore security. And splits communities

[TheBiographer]

1. What is the difference between a softfork and a hardfork?
   A hardfork makes prevously invalid block vaild (widens the rules). A softfork makes previously valid blocks invalid (strengthens the rules).

2. What are some of the reasons why you would do a hardfork?
   When the conensus model needs to be changed, a hard fork makes sense. It is a clear and democratic decision between the miners.

3. What are some of the risks with performing a hardfork
   The hash power could split and the network could become more insecure.

[sbipr]

1. What is the difference between a softfork and a hardfork?
   Hardforks make previously validate previously invalid blocks. Softforks invalidate previously valid blocks.

2. What are some of the reasons why you would do a hardfork?
   To make a change to the network such as increasing block size.

3. What are some of the risks with performing a hardfork?
   The blockchain will be split and with it the community of miners that secure the network.

[Cheatz]

1. A hardfork can be viewed as an expansion of the ruleset, making blocks that would have previously been considered invalid, valid. A softfork can be viewed as a contraction of the ruleset, making blocks that would have previously been considered valid, invalid.

2. Some of the reasons to do a hardfork are: the community is split about a major update to the network. It can be viewed as a clear and democratic way of making changes to the network and those who disagree with the changes can form their own community around the new chain/token if they so choose.

3. The community splits which can harm the project as a whole. The hash power splits which could compromise security.

[Matthew_Sandoval]

1. A softfork makes previous valid block - invalid, and a hardfork makes previous invalid blocks - valid

2. Some reasons for a hard fork are updating security issues found in older versions, or adding new functionalities.

3. Split chain, split community and split hash power

[Alex_Chaz]

1. hard fork = expansion of the ruleset. It makes previous invalid blocks: valid
   soft fork= contraction of the ruleset. It makes previous valid blocks: invalid.
2. A hardfork adds functionality to the ruleset
3. A hardfork will or can split the community, the blockchain and the hashing power.

[HO5]

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

1. A SF makes valid blocks invalid (Contraction), a HF makes invlaid blocks valid (Expansion).

2. Consensus change/update.

3. Splitting the chain, splitting the community, splitting the has power wihich makes the chain less secure.

[Athenophia]

1. What is the difference between a softfork and a hardfork?
   HF: Previous invalid blocks now valid → EXPANSION OF RULE SET
   SF: Previous valid blocks now invalid → CONTRACTION OF RULESET

2. What are some of the reasons why you would do a hardfork?
   a. to expand the ruleset
   b. to split the chain and create a new currency
   c. it can be considered a more democratic update

3. What are some of the risks with performing a hardfork?
   a. it regularly splits the chain and community
   b. the has power gets split because some miners remain on the old chain, and some miners go to the new updated chain
   c. The loss of some miners to the network reduces security on both the new network and old network.

[RustyGray]

1. A soft fork is where a previously valid block becomes invalid.
   A hard fork is where a invalid block becomes valid.

2. If the rules of the consensus needs to be changed.

3. Some miners will leave to the new chain which will lower hash power which also lowers security.

[Toko]

1. Soft fork makes previously valid blocks invalid and hard fork makes invalid blocks valid.
2. A change in concensus,
3. During a hard fork the hash power splits into two chains.

[Eric_Pezzulo]

1. Hard Forks make previously invalid blocks valid, Soft Forks make previously valid blocks invalid.

2. Consensus changes or expanding a rule set.

3. A Hard Forks split chains, hash power, or split a community.

[Thu]

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

A softfork makes a previously valid block invalid, while a hardfork is the opposite. A hardfork makes a previously invalid block valid.

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

Some reasons a hardfork occurs is to increase the block size, make the block clearer and create a more democratic community.

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

Some of the risks with a hardfork which may occur is a split in the chain, a split in the community and a change in the hash power split.

[capriciousjones]

1. A soft fork is a network upgrade that contracts the consensus rule set, effectively making previously valid blocks invalid. The chain won’t split with a simple majority of nodes accepting the upgrade. By contrast, a hard fork is a network upgrade that expands the consensus rule set, effectively making previously invalid blocks valid. The chain will split unless 100% of the network accepts the upgrade.

2. The main reason to choose a hard fork is to expand the consensus rules, so any reason that expands the rule set would answer this question. The only example discussed in the lectures is increasing the block size, so that’s what I’m saying here. I assume other improvements regarding speed, efficiency, security, etc. could also expand the consensus rules, but I don’t know about those yet. There may be disagreement over the new proposed rules, and a splitting of the chain will likely result. In the lecture, “clear” and “democratic” were discussed as pros (arguments in favor of, as opposed to soft forks), but I don’t see them as “reasons” for doing it. They seem to be mere characteristics of the event.

3. Some risks of hard forks are that the community will split along with the chain and that the decrease in hash power will decrease security. The network could potentially lose value on many levels.

[Lakov]

1. Hard forks expands the concensus rules. It makes previousely Invalid blocks Valid. Soft forks do the opposite substract the concensus protocol, Makes previously Valid Blocks to Invalid.
2. The reson to do a hard Fork is to expand the concensus protocol so extra functions can be added!
3. The risk performing Hard fork is that can create split in the comunity and lose of Hash power wich can lead to reduced security! In Hard forks creation require 100% update and agreement of the protocol is needed. If its not achived split in the comunity is created and new and and old version exist. New coin(updated) is born in a way!

[Tomaz]

1. What is the difference between a softfork and a hardfork?
   The softfork makes the previous block valid and the hardfork makes the previous block invalid.
2. What are some of the reasons why you would do a hardfork?
   If you want to change the set of rules in your consensus mechanism, for example, if you want to decrease or increase the block size.
3. What are some of the risks with performing a hardfork?
   • We need 100% of the network to update, to avoid a fork. If the old nodes don’t update(this might be a 1%).
   • The hash power is split (security risk)
   • The community is split