Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#422

  1. A softfork is a contraction of the rule-set of the blockchain, whereas a hardfork is an expansion of the rule set.

  2. A hardfork will allow both chains to perpetuate. If there is disagreement between the community, new rules can be added to on a new chain. This will also produce a new coin.

  3. A hardfork will affect the security of the chain by splitting the hashing power of the network. The community will be split, as each node will have to choose which chain they will follow

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#423
  1. Per definition a softfork makes previously valid blocks invalid. That means after the update there will be still only one chain, because all miners always “follows” the longest chain (in terms of proof of work). You can think about a softfork as a a reduction of the permitted rules/ possibilities. A hardfork makes previously invalid blocks valid. That means after the update there will be two chains, one with the new rules and one with the old rules. The miners can decide which blockchain they want to “work” for.
  2. With a hardfork you have a democratic process with clear rules about the update. Every nodes/ participants can decide which blockchain they want to use. A hardfork can be reasonable if there is some security issue which is then solved with the new rules. Another reason is that through new rules the blockchain could handle more data, be faster or enable cheaper transactions. Maybe a reason could also be to make more money with nearly no costs (in terms of cryptocurrency) because you got airdropped some free coins. A good marketing must of course be present so that there are enough users which likes the new coin.
  3. A hardfork split the community, the chain and also reduces/ splits the hashing power which results in less security in both networks. A hardfork could also results in loosing trust in both chains for persons outside the community, because they could think the developers are not the same opinion which means there are problems which cannot be solved with a proven solution.
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#424

Hi,
1, Soft- there is only 1 blockchain afterwards > it updates rules/code and only majority is needed. Nodes will update while whole system keeps going. All previous blocks are still valid. Blockchain is compatible with previous version.
Hard- 2 blockhains are created> creates new blockchain, every one who wants new will need to upgrade. Only new blocks are counted as valid.
2, It makes all previous transactions and block invalid/valid. All users/nodes/miners needs to upgrade to new version. You can add new funcionatility or make big changes to the code etc. which would not be possible with current blockchain setup.
3, It splits community- someone wants to go to new and someone does not. So it makes whole system less compact.

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#425
  1. Softfork makes previously valid transactions invalid and needs at least 51% of approval. The
    lesser part may use the other chain but not vice versa.
    Hardfork needs consensus of 100% and it´s an extension in the ruleset. It also makes previous
    invalid blocks valid.
  2. For update reasons, fixing bugs or creating another coin.
    3.Hash power will be reduced, thus security will also be reduced as well as split of the community.
#426

  1. What is the difference between a softfork and a hardfork? A “soft for” is a software update that is compatible with earlier versions, in other words it’s backward compatible. A “hard fork” is a software update that isn’t backwards compatible, so any blocks coming after the activation of the software update will have to follow the new rules in order to be considered valid

  2. What are some of the reasons why you would do a hardfork? To change consensus rules and the network protocol

  3. What are some of the risks with performing a hardfork? A split community and less hash power.

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#427

1 / hard forks makes a previously invalid blocks valid and soft forks make previously valid blocks invalid
2/ you want to update the rules of the blockchain or create a new currency or for example increase the block size
3/ you split the chain , you split the community ,new currency , you split the hash power( reduces security)

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#428

  1. The difference between soft forks and hard forks is whether it’s an expansion or contraction of the rule set. A soft fork is a contraction of the rule set, while a hard fork is an expansion.

  2. You would do a hard fork to have a clear, defining update which resulted in a new currency.

  3. With performing a hard fork, some of the risks include fracturing the community and the hash power of the network.

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#429

1
In the hardfork previously blocks that would have considered invalid in the parallel bc become valid, In the softfork blocks that previously would have considered valid, in the new version of the chain become invalid.

2
Some divergence in the community, real for ex to change the consensus rules or driven by greed: a community leader would setup a new ruleset for the fork and take advantage of some premining for example.

3
The major risk is the community doesn’t like the new ruleset and for a big portion decides to mantain a node with the old coin.

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#430

1 - Hardfork makes previously invalid blocks now valid, for example 1mB to 2mB. (Expansion) Softfok makes previously valid blocks invalid. (Contraction)

2 - Hardforks happen when there’s disagreement in the community over an update. For instance Bitcoin Cash where the new forks wanted block sizes bigger.

3 - The main risk is weakening the network as the hash power will be split between the 2 chains.

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#431
  1. Hard forks and soft forks are essentially the same in the sense that when a cryptocurrency platform’s existing code is changed, an old version remains on the network while the new version is created. With a soft fork, only one blockchain will remain valid as users adopt the update. Whereas with a hard fork, both the old and new blockchains exist side by side, which means that the software must be updated to work by the new rules. Both forks create a split, but a hard fork creates two blockchains and a soft fork is meant to result in one.

2.The following are reasons why developers may implement a hard fork:
a) Correcting important security risks found in older versions of the software
b) Add new functionality
c) Reverse transactions—for example when the Ethereum blockchain created a hard fork to reverse the hack on the DAO.

3.Lower security, loss of trust, and the community splits and engages into war of words over the media which consequently scares newcomers to enter the crypto space.

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#432
  1. Soft forks form when an update tightens the consensus rules making previous blocks invalid therefore causing a contraction this is done through for example making the bit size smaller.A hard fork is caused by an update that makes previous blocks that were invalid valid this causes an expansion in the consensus rules.
  2. Change the consequences rules.
  3. It splits the community and the hash power making the network less secure.
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#433

[quote=“ivan, post:1, topic:8446, full:true”]
Homework on Soft and Hard Forks - Questions

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

A chain split is a scenario where there are two or more competing versions of the blockchain that share the same history before any updates and after the updates the rule sets will differ. Both the Soft and Hard forks can cause a chain split but equally both can avoid a chain split.

Differences between Soft and Hard Forks:-

Soft Forks:
A soft fork occurs after a software update that makes changes to the blockchain consensus/rules/protocol that tightens/limits/contracts the old rule set enforced by the full nodes; therefore a soft fork update will enforce the soft fork rules. A soft fork is a contraction/backward compatible to the rule set, which makes previously Valid blocks (before the soft fork update) Invalid by the updated full nodes when it breaks the new soft fork rules after the soft fork activates.

Hard Forks:
A Hard fork occurs after a software update that makes changes to the blockchain consensus/rules/protocol to expand/loosens the rule set enforced by the full nodes; therefore a hard fork update will enforce the hard fork rules. A Hard Fork is a expansion/non backward compatible to the old rule set, which makes previously Invalid blocks (before the Hard Fork update) Valid by the updated full nodes if it follows the new hard fork rules after the hard fork has activated.

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

A hard fork would be done if a radical change to a network’s protocol/consensus mechanism that makes previously invalid blocks and transactions valid. Therefore Hard Forks occur when the user base or developers decide that something fundamental about a cryptocurrency needs to change. This can be due to a major hack, or a fundamental disagreement within the community, like we’ve seen with Bitcoin and Bitcoin Cash, Bitcoin Gold and others. This can be damaging for Bitcoin on the long run as Hard forks could weaken public confidence and add confusion.

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

  • The network hash power splits hence splitting the network will result loss/weakening the hash power for the split chains in general.
  • Less Secure Network; the more miners mining on the network the more secure the network.
  • Divided community that may generate uncertainty, confusion and lack/loss of confidence form users and investors in Bitcoin/cryptocurrency.
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#434

A HF makes previously invalid blocks valid and a SF makes previously valid blocks invalid.

You want to have a clean split where you don’t want to force any node or miner to follow. You want to have a new coin. You want to avoid confusion.

Security is lost, because of reduced hash power (fewer miners). The community is split.

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#435
  • A hard fork is an expansion of the rule set making previously invalid blocks valid and a soft fork is a contraction of the rule set making previously valid blocks invalid.
  • If you needed to expand the rule set. This would be considered a clear update and democratic.
  • You run the risk of splitting the chain, community and the hash Power.
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#436
  1. A softfork is a contraction of the consensus ruleset which results in the update being adopted by the network if 50% or more of the nodes/hashing power adopts the new ruleset. A hardfork is an expansion of the consensus ruleset resulting in two seperate chains.
  2. This can essentially create a new currency which may be desirable depending on the update carried out and how this impacts the ecosystem. It is also a clearcut update i.e. if you adopt the new consensus ruleset you are clearly on the new chain.
  3. This can split the community which in turn reduces the impact of the ecosystem as well as splitting the network hashing power.
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#437
  1. A softfork ‘new sw nodes’ always generates blocks that are backyard compatible with the ‘old sw running nodes’ ; in an hardfork the ‘new sw nodes’ may generate blocks that are not accepted in the ‘old sw running nodes’ causing in this case the network to fork/split the blockchain history.
  2. A reason to do choose a hardfork is when all community agrees easily that all 100% of the nodes in the network have to be upgraded (if they want to join democratically/freely/mandatory) to the new consensus rules. A clear reason for a hardfork could be a security correction/fix/patch, or an easy to reach consensus new features on the blockchain.
  3. If the majority of the nodes democratically/freely decide not to join the hardfork just splits the community into two lesser communities. Another risk is new sw bugs, badly tested hardfork may stop the consensus completely and blockchain can become stuck until new hardfork-fix is applied.
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#438

  1. A hardfork is an expansion of the ruleset that makes previously invalid blocks valid. A softfork is a contraction of the ruleset that makes previously valid blocks invalid.

  2. A fork can be used to improve the network or create a similar network that follows a different set of consensus rules

  3. Split the chain, split the community, split the hashing power.

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#439
  • A softfork is a fork that makes previously valid blocks invalid, and a hardfork makes previously invalid blocks valid.
  • A hardfork can expand the rules of the network. The changes that come with a hardfork make any following transactions incompatible with the network rules that were in place before the update. These new transactions function on a separate chain, so participants can use a hardfork to pursue their own version of truth on their own separated blockchain. In other words, you can create a new coin by hardforking. Performing a hardfork can also take away hash power away from the original chain.
  • You risk a loss of hash power from the original chain which reduces security. It can split the community and lead to a lot of infighting. There could be unforeseen vulnerabilities on a new chain with significantly less hash power than the original chain.
    [/quote]
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#440

  1. A soft fork update makes previously valid blocks invalid this sees a contraction of the rule set. Hard fork makes previously invalid blocks valid which is an expansion of the rule set.

  2. To allow some sort of expansion in the blockchain i.e make the block size bigger, faster transactions or less decentralization.

  3. Some of the risks associated with hard forks are that it will split the chain and also the community and also the hash power as this will cause a reduction in miners mining on a specific chain as they will have to choose which blockchain to follow.

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#441

[quote=“ivan, post:1, topic:8446, full:true”]
Homework on Soft and Hard Forks - Questions

1. What is the difference between a softfork and a hardfork? Hardfork will permit invalide Block to come Valid and Softfork will invalid some Valid previous Block
2. What are some of the reasons why you would do a hardfork? The Update some change in the Consensus Rules set.
3. What are some of the risks with performing a hardfork? Split the Blockchain and the community and the Blockchain will loose half of it’s Hash Power

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