Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#4094

What is the difference between a softfork and a hardfork?
A hard fork requires all nodes to be updated. The rules are changed in such a
way that previous invalid blocks become valid. The ruleset needs to be more
inclusive to allow for the new blocks to be accepted. That inclusion requires a
new currency with a new network in place. Unupdated nodes won’t be able to
accept new block types nor interact with new nodes.
With a soft fork, the rules change in such a way that previous valid blocks may
become invalid and therefore the ruleset needs to be more exclusive. This means
that old nodes may still accept the new blocks and therefore a new network will
not be required.

Understanding this from a software engineering perspective by looking or
discussing what in the source code has required this may help me comprehend this
better but for now, will be taking this at face value.

What are some of the reasons why you would do a hardfork?
As mentioned earlier, if the rules change in such a way that the network needs
to be more inclusive of invalid blocks, a hard fork would be required. The old
nodes won’t be able to accept new nodes with the new criteria so the nodes all
need to be updated.

What are some of the risks with performing a hardfork?
One risk is that since we have a new network with all the previous transactions,
double spending would be possible. Old UTXO’s in the older network may still
be used while the new UTXO’s in the newer network are also available.
Since there is two networks, we run another risk of having some people use one
network while the others use the other, splitting not only the value of the
currency in two networks but also the global hash rate available to mine the
currencies. The concept of multiple networks introduces multiple currencies and
may indicate confusion to some unless older networks are completely discarded
with all coins transferred to the new network to avoid people from losing their
currencies.

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#4095

Homework on Soft and Hard Forks - Questions

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

A softfork is an update that makes previously valid blocks invalid whereas a hardfork is an update that makes previously invalid blocks valid.

  1. What are some of the reasons why you would do a hardfork?
  • It is a clear update
  • Democratic
  1. What are some of the risks with performing a hardfork?
  • Splitting the chain
  • Splitting the community
  • Hash power is split, which can decrease security.
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#4096
    1. A softfork is a fork that makes previously valid blocks invalid and a hardfork makes previously invalid blocks valid.

  2. Their are different point of view in terms of developing the network as a community creating a democratic spilt

  3. It splits the network resulting in less security. New currencies can develop which some people may not view as a positive.

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#4097

What is the difference between a softfork and a hardfork?
Soft fork makes previously valid blocks invalid and hard fork makes invalid blocks valid.

What are some of the reasons why you would do a hardfork?
A change in consensus rules.

What are some of the risks with performing a hardfork?
You risk a loss of hash power from the original chain which reduces security.
It can split the community and create a new currency.

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#4098

1.The difference is that with a SF is that you can push a update without having 100% of nodes updating you would just need 50% to update. A hardfork requires 100% to update because all previous blocks become invalid

2.A democratic way to implement a clear update

3.Creating essentially a “new” coin which can split the community

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#4099
  1. What is the difference between a softfork and a hardfork?
  • softwork contracs the rule set, hardfork expands the rule set
  1. What are some of the reasons why you would do a hardfork?
  • you want to be democratic while implementing update
  1. What are some of the risks with performing a hardfork?
  • split of hash power
  • split chain
  • split community
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#4100
  1. What is the difference between a softfork and a hardfork?
  • Soft fork limits the rule set enforced by whole nodes.
    Hardfork relaxes the ruleset enforced by full nodes.
  1. What are some of the reasons why you would do a hardfork?
  • A hard fork is needed when there are changes that are not backwards compatible with the old rules.
  1. What are some of the risks with performing a hardfork?
  • You have to convince everyone else the community can get divided.
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#4101

  1. Hardforks happen when the protocol changes (make bigger blocks) and makes previous invalid blocks to be valid. Softforks occur when the protocol changes and makes previous valid blocks invalid.

  2. A hardfork would be proposed / performed to increase the functionality (increase speed, size of blocks, lower transaction fees) of the network.

  3. Dividing the community, weakening the network security, perceived lower confidence in networks by outside observers.

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#4102

  1. Hardfork makes previously invalid blocks valid. Softfork makes previously valid blocks invalid.

  2. A change in the consensus.

  3. A split hash power.

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#4103

  1. softfork update makes previously valid blocks invalid, hardfork updates make previously invalid blocks valid, softfork updates are preferred by the community.

  2. clear and democratic

  3. splits chain, community, hash power split which lowers security.

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#4104

What is the difference between a softfork and a hardfork?
hard fork makes the previous invalid blocks valid, while a soft fork makes previous valid block become invalid

What are some of the reasons why you would do a hardfork?
need to increase block size from 1mB to 2mB

What are some of the risks with performing a hardfork?
more likely to have create forks, update needs to be updated on 100% nodes to avoid a fork

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#4105

1 - A soft fork is a procedure that takes 50% + 1 of all miners to implement, requiring only a simple majority and “updating” the whole blockchain, making it so that everyone in it must abide by the new rules and invalidating every block that does not follow these new rules.

A hard fork requires an unanimous decision by all miners, and essentially splits the blockchain in two, creating a new currency. It is used to “change” the whole chain, therefore expanding it rather than limiting it with new rules.

2 - Hard forks can “roll back” protocol breaches, like hacks. Hard forks are more democratic, requiring unanimous votes. Hard forks are updates to the blockchain and expansions to the rules, therefore amplifying it. (often times)

3 - Division of hashpower as miners split on which chain they’ll be on. Less security as theres less validators and the community is divided.

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#4106
  1. Softfork are perform to contract the current ruleset thats make the valid blocks invalid, while the hard fork expand the current ruleset and force the changes thus a split chain can occur.
  2. To enforce a changes.
  3. Split chain, split hash power, lesser security etc.
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#4107

  1. With a hard fork invalid blocks will become valid and with a soft fork valid blocks will be invalid.

  2. To correct important security risks or add new functionalities.

  3. The community and hash power could split.

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#4108

  1. soft fork is making previously valid block invalid,while hard fork is making previously invalid blocks valid.

  2. it is more democratic,and it is making new curency.

  3. you are getting into lower security issues,and you are cutting the comunity.

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#4109

  1. A Hard Fork represents an expansion (or relaxation) of the validating protocol followed in the chain by the the participating nodes, whereas a Soft Fork represents a contraction (or tightening) the protocol. In the lessons the example used was in altering the Block Size parameter (Note to community manager: Though I wonder if other parameters of the protocol other than size can be altered???) Also a Hard Fork requires affects and applies to 100 percent of the existing nodes whereas on a Soft Fork only the the majority (more than 50% of miners hash power is required to implement the change)

  2. Some reasons could be:

    • To create a new currency or a derivative of the original currency
    • To fix or implement a new philosophy to the original crypto currency (for example an update to the original white paper)
    • Maybe it follows an evolution of the original chain by its its founders and/or the majority of the community, thus, representing a perceived improvement to the original chain
    • Perhaps the underlying reason is that it may give entry to additional nodes in the future or nodes of a different average hash power than the ones conforming the original chain eg: either increasing or decreasing the accessibility to the new nodes to participate
    • Also, it could be that with the change, it is perceived that the general public will have a greater acceptance of the evolved protocol versus the old one.

  3. Some negatives (at time of implementing the hard fork) will be:
    -that you split and divide the community (although later you you may increase it to a greater level in the future if the changes is successful)

    • That you decrease the available hash-power and validating miner nodes by forking, thus the integrity of the risk is more vulnerable to attack
    • You may reduce the popularity of the new currency vs the previous one and lose coin market cap in the process or market share and relevance in the crypto space…
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#4110
  • What is the difference between a softfork and a hardfork? A soft fork makes previously valid blocks invalid vs a hard fork making previously invalid blocks valid.
  • What are some of the reasons why you would do a hardfork? Expansion of the rule set and it’s clear and democratic.
  • What are some of the risks with performing a hardfork? Split the chain, split the community, splits hash power.
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#4111

  1. a hardfork results from an update of consensus rules which become more permissive (therefore called expansion). Certain previously invalid blocks will now become valid. This requires all the nodes to accept the new rules. On the contrary a softfork results from an update of consensus rules which become more restrictive (restriction). Certain previously valid blocks will now become invalid. It is sufficient to have the majority of nodes moving to the new rules, for the fork not to actually happen, since this will just create stale blocks.

  2. if you want to make the rules more permissive and/or if you want to push the rules to the entire community, then you would prefer to do a hardfork.

  3. The risk would be to split the community of nodes. Indeed the changes that come with a hardfork make following transaction invalid with the old network rules (before the update) and this may create a different chain (and coin). As a consequence, the hash power would split, which would lower the security level of the network.

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#4112
  1. A soft fork makes previously valid blocks invalid, (contracts rule set) while hard forks make previously invalid blocks valid, (expands rule set).
  2. A hard fork can change consensus rules for all nodes.
  3. You risk hash power split, split chains, and a split in community which can lead to lower security.
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#4113

Homework on Soft and Hard Forks - Questions

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

A hardfork makes previously invalid blocks valid. While a softfork makes previously valid blocks invalid.

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

You would do a hardfork if you were trying to implement a separate/new chain such as bitcoin cash. It creates a new currency by creating a new chain.

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

Some of the risks with a hardfork is that the hash rate can be cut drastically because the update would split the community into different chains.

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