Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#4114

  1. What is the difference between a softfork and a hardfork?
    The soft fork will be a compression of the nodes after updates, it makes previously invalid blocks valid.
    The hard forks will be an expansion of the community nodes after rules updates, it makes previously valid blocks invalid

  2. What are some of the reasons why you would do a hardfork?
    Updating the system enabling it to get more functionalities and matching the new consensus.

  3. What are some of the risks with performing a hardfork?
    Risks of a community splitting and hash power splitter which can put the system at risk

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#4115
  1. Hard forks happen as a result of a change that is not compatible with the previous rules, you need to apply the change or else the blocks will not be valid anymore.
    Soft forks happens as a result of a change that is still compatible with the previous rules.
  2. Hard forks can add functionality to a network that wouldn’t be possible in the previous spec.
  3. Reduced hash power -> reduced security ; divided community,
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#4116

What is the difference between a softfork and a hardfork?

  • Hardfork is when previously invalid blocks become valid
  • Softfork is when previously valid blocks become invalid

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

  • increase the blocksize, to enhance security, new currency

What are some of the risks with performing a hardfork?

  • split community, weaken security
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#4117

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

    A Soft Fork makes prior valid blocks invalid.
    A Hard Fork makes prior invalid blocks valid.

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

    You make some sort of change to validation rules that make current invalid blocks valid.

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

    You split the chain. All miners don’t have to adopt and update their mining software.
    You could reduce hash rate as you could split the mining community some adopting the new update and others not. (See Ethereum classic)

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#4118
  1. A soft fork is when an update makes a previously valid block, invalid. Hard forks are when an update makes a previously invalid block, valid.
  2. For example if you want to have more transactions allowed on a block that is limited in size, you would make an update to change the allowable block size. That update would create a hardfork.
  3. Some of the risks would include creating a whole new blockchain that could open up the risk of somebody making fraudulent transactions on that new fork and the consensus not recognizing it.
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#4119
  1. What is the difference between a softfork and a hardfork?
    Decrease and increase. Valid to invalid, invalid to valid
  2. What are some of the reasons why you would do a hardfork?
    A change in vision and consensus.
  3. What are some of the risks with performing a hardfork?
    Hashpower of the whole network would decrease, meaning the security reduces.
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#4120
  1. In a softfork, blocks that previously would have been valid become invalid, whereas in a hardfork, blocks that previously would have been invalid become valid.
  2. You may want to introduce new functionality that would previously not have been recognized. It could also be that park of the network doesn’t consent to the change and wishes to continue running the old version of the block chain.
  3. You could split the network if a significant portion refuses to join, which would diminish hash power, security.
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#4121

  1. The difference between a softfork and a hardfork is that HF makes previously invalid blocks valid and the opposite is true for SF where previously valid blocks are invalid after an update.

  2. Some of the reasons why you would do a hardfork are changes to the consensus algorithm that would improve functionality that is not possible with current rules.

  3. Some of the risks with performing a hardfork is a split in the chain, split in the community and hash power split providing less security of network.

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#4122

  1. A soft fork is an update in the consensus rules that make a previously valid block invalid, a hard fork is exactly the opposite.

  2. Sometimes you might want to make an “expansion” on the set of rules to allow, for example, larger blocks. Because now they might contain a higher number of transactions in the same block, which would help with speed and scalability.

  3. The chain would split if the community does not really agree, so there would be different chains coexisting. Also less hash power because that is also split, this can add to security risks.

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#4123

A softfork excludes previously approved blocks from the blockchain, a hardfork includes previously excluded blocks into the blockchain.

A hardfork is done to change the consensus algorithm for the blocks in the blockchain. The change is usually done when the community believes that it will make something better, either functionality, security or utility etc.

It can split the community and create a new currency, since the ones that don’t accept the new “rules” or update will automatically be left with a separate blockchain and therefor have a choice to adopt or not.

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#4124
  1. A hardfork expends the ruleset and a softfork contract the ruleset. HF 1mb -> 2mb SF 2mn -> 1mb.
  2. A hardfork update (almost) always splits the chain in 2. Nodes can choose if they want to perform the update, if not the will keep performing in the old chain with the old ruleset. When the chain is split it means that there is also a new coin/ cryptocurrency needed to perform the transactions on that chain.
  3. When performing a hardfork event you will split the chain in 2. What means that your community and hash power will be split as well. This can compromise the security of the chain.
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#4125

Homework on Soft and Hard Forks - Answers:

  1. Hardfork updates make previous unvalid blocks valid, and the softfork updates make previous valid blocks invalid. First one increases the rule set, the second one decreases it.
  2. New updates can fix old bugs and errors and make the blockchain more modern.
  3. Performing a hardfork may cause security problems.
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#4126

What is the difference between a softfork and a hardfork?

A softfork is a blockchain network update that makes previously that makes previously invalid blocks become valid.

A hardfork is a blockchain network update that makes previously that makes previously valid blocks become invalid.

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

A hardfork provides a clear difference in the consensus rules. With a hardfork, nodes which follow different sets of rules, eventually divide the original blockchain into separate blockchains. This is because the longer chain will be rejected by the non-updated nodes, because it violates their consensus rules. A hardfork can provide greater incentive for all nodes to update, if they want to all continue to participate in the same network, with the same community and combined hash power. In any case, a hardfork tends to provide a more obvious decision about whether to update together as a group of nodes on a single blockchain, or not update, and separate the blockchain into 2 networks. With a softfork, like Segwit, some nodes may not be updated, for various reasons, and this can lead to a lack of unity in consensus.

A good example of a hard fork is BTC Gold, which separated from BTC in a hardfork on Oct. 24th, 2017. This resulted in two different cryptocurrencies, each with its own valid value proposition. BTC is the original cryptocurrency, with the world’s most powerful blockchain network. Its established market dominance and time-tested reliability attract large, institutional investors. However BTC’s algorithms are so demanding that normal users are generally excluded from the mining process, because they lack the expensive computer rigs required for consistent mining profits. Much of the wealth associated with BTC production and ownership is controlled by a minority of rich miners and investors. This state of affairs fails to meet the aspirations of parts of the blockchain community, seeking more widespread distribution of crypto wealth. BTC Gold addresses this issue with an algorithm that allows for crypto mining with relatively inexpensive computer power. For miners who could not afford expensive crypto mining rigs, there was a good reason for doing a hardfork: creating a crypto network with a consensus mechanism that allowed more people to participate in the mining process.

What are some of the risks with performing a hardfork?

One hardfork risk is diving the network, including dividing the community of individuals who participate, and diving the network hash power. The lower hash power, of each of the resulting networks (compared to the original unified network), can sometimes mean a decrease in network security.

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#4127
  1. Softfork makes previously valid blocks invalid. Hardfork makes previously invalid blocks valid.
  2. Update the chain, change in consensus
  3. Splits chain, splits community,
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#4128

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

soft fork updates makes valid blocks to invalid & Hard fork updates previously invalid blocks to valid

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

A hardfork would be necessary when there are changes that are impossible to make backward-compatible with the older version. Like added new functions and features to the blockchain protocol in order to make it better, more competitive or even cross-compatible with other blockchains.

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

Its needs 100% of the network to update to avoid a fork, if for some reasons that the older version does not accept the update then it creates a risk of a chain split. It’s potentially messy and could lead to confusion and loss of money because of it being a decentralized nature of system it can be challenging to get all the nodes to switch to newer version at the same time

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#4129

Hard fork update is expansion of the rules that makes invalid blocks valid while a soft fork is a contraction making valid blocks invalid.

A hard fork is used to change the consensus

This could split the community the Hash power and be a less secure network

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#4130

  1. What is the difference between a softfork and a hardfork?
    Hardfork: Previously invalid blocks become valid.
    Softfork: Previously valid blocks become invalid.

  2. What are some of the reasons why you would do a hardfork?
    If there is an update to the network that needs to be followed by all the community.

  3. What are some of the risks with performing a hardfork?
    The network might be split into two, as the previously invalid blocks can now be valid, and the previously valid blocks remain valid as well.

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#4131
  1. A hard for makes an expansion of the rules whick makes invalid data to be valid. A soft fork do the oposite, it is a contraction of the rules, makes valid data to be invalid.
    2)To introduce new functionalities or improvements to the chain it might be necccesary to change the consensous mechanism
    3)It will split community. Decrease of security due to reducction of the hash rate.
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#4132
  1. What is the difference between a softfork and a hardfork?
    Soft fork makes previously valid blocks invalid and hard fork makes invalid blocks valid.
  2. What are some of the reasons why you would do a hardfork?
    If I want different currency on separate chains.
  3. What are some of the risks with performing a hardfork?
    split of miners reduces security, reducing the use of chain due to community split.
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#4133

  1. Soft fork makes previously valid rules invalid and constricts the rule set. A hard fork does the opposite and expands the rule set.

  2. Hard forks are done when you want to create a new and expanded consensus and perhaps a complete split into a new coin

  3. Risks are potentially decreasing the hashpower and splitting up the community

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