Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#482

  1. A hard fork makes invalid blocks valid, a soft fork makes valid blocks invalid.

  2. Create a new currency.

  3. Hash power splits and therefore you have less security.

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#483

1- What is the difference between a softfork and a hardfork?
An update increases the block size by a hard fork and decreases the size by a soft fork
By a soft fork is no chain split by a hard fork there is.
Soft forks makes previously valid blocks invalid. Hard forks makes previously invalid blocks valid

2- What are some of the reasons why you would do a hardfork? To increases the block size, to split the chain/community or get a new currency

3- What are some of the risks with performing a hardfork?
Hash power is split which reduces security

#484
  1. What is the difference between a softfork and a hardfork?
  • A soft fork is a software update to the protocol, where the update stil works in the allready made rules. A hardfork changes the rules, so that invalid blocks will in the future be valid. (ofc. dependes on what changes are made)
  1. What are some of the reasons why you would do a hardfork?
  • You want to increse the block size, to make trancations faster and cheeper. like BTC cash.
  1. What are some of the risks with performing a hardfork?
  • You fuck the community :smiley:
  • The hardfork will maybe not be accepted by the miners, and is depending on at least 50% of the networks hashing power, change to this update and agree to change in the protocol.
#485
  1. A hardfork is when an update is made to a blockchain network in which the consensus rules are changed in a way that expands the current ruleset. Such as increasing the block size limit from 2mb - 4mb. The main difference between this and a softfork is that this consensus rule change means that previously invalid blocks are now made valid. This means that the network will almost always fork and create 2 different chains unless 100% of the nodes on the orginal chain switch to the hardfork update & follow the new consensus. This is because original nodes will continue to accept blocks that ONLY fit their consensus rules. Whereas the updated nodes will accept blocks fitting the old consensus rules and also blocks that fit the expanded consensus rules. Even if just 2 nodes continue to use the original consensus the original chain will continue separate from the updated chain.

A softfork is an update which is made to a blockchains network in which the current rules of the consensus are contracted. Such as the block size limit changing from 2mb - 1mb. This means that previously valid blocks are now made invalid. Because of this a fork in the chain can be avoided if >50% of the nodes and therefore the hashpower update to the new consensus rules, however if <50% of the nodes update a fork is still created. This is because all of the blocks produced by the nodes using the updated consensus rules will still be accepted and validated by nodes using the old consensus because of the updates contracting nature. Meaning if the updated nodes have more hash power then the original nodes will switch over to the newer chain because of the fact the difficulty will be higher and as a result they will choose this chain as it is the longest.

  1. One of the reasons why you would perform a hard fork is that arguably it is more democratic than performing a softfork. This is because if the miners/nodes which do not want to update are in a minority, they are able to continue producing blocks on the old chain without being forced into using the new chain by the rule of nodes always selecting the largest chain. This can be seen as a fairer way to decided about changes to a network.

another reason why you would perform a hard fork is simply that a solution to an issue on the network can only be achieved by an expansive measure or whereby the best solution to an issue would be an expansive measure. This would mean that a soft fork would not be possible for you or the community to act in the best interests of the network, of course this may come down to opinion as for what direction the community wants to take the network. It is more logical that if an issue can only be fixed by an expansive measure that a hardfork is performed as opposed to if you have solutions that involve a softfork. this is because generally softforks are prefered over hardforks by the community.

A hardfork is generally considered to be a clear update as opposed to a softfork which eliminates any confusion.

  1. A risk of performing a hard fork is that the hashpower of the network is divided meaning that the security is the network is reduced. This means that it becomes easier for the network to be hacked or compromised and arguably increases the risk of miner centralisation in each network, particularly if either of the networks are not of a substantial size after the fork.

A risk for miner’s is that if the network is forked, the nodes which have updated to the new consensus or the nodes remaining on the original consensus are at risk of being part of a network that is much smaller and therefore if these nodes are miners, their profitability will be significantly reduced as they will not be able to collect as many transaction fees from the blocks they have build, and the value of the block rewards they receive may be significantly lower.

Another risk could be argued that the community may become divided over the split of the chain, this can result in hostile behaviours and a generally less productive environment for blockchain networks to develop.

1 Like
#486

Homework on Soft and Hard Forks - Questions

  1. What is the difference between a softfork and a hardfork?
    A softfork is a contraction of the rule set and a hardfork is an extension of the rule set.

  2. What are some of the reasons why you would do a hardfork?
    A reason could be to willingly create a new currency or increasing the block size.

  3. What are some of the risks with performing a hardfork?
    The community might be split afterwards as well as the hash power which reduces the security of the network.

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#487
  1. Hardforks make previously invalid blocks valid while softforks do the opposite by making previously valid blocks invalid.
  2. For a change in consensus/rules.
  3. Can split chains and reduce the level of security.
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#488

  1. A soft fork is an update that creates a contraction of the consensus rule set, causing previously valid blocks to be invalid moving forward. Such an update only requires a simple majority of the network to comply in order to proceed while avoiding a fork. If less than 50% of the nodes accept the update, however, a soft fork will occur. Conversely, a hard fork is an update that creates an expansion of the rule set, allowing previously invalid blocks to be valid following the update. This kind of update requires 100% of the network to comply in order to avoid a fork.

  2. A hard fork is optimal if a foundation or community wishes to pursue a renewed (or remedied) vision for the project and force an expansion of the consensus rule set. The hard fork presents a clear, democratic update procedure where nodes can effectively choose to comply and continue contributing to the amended network, forge ahead with the development of a new currency on the forked blockchain or discontinue participation altogether.

  3. If the update does not ultimately achieve 100% acceptance on the existing blockchain, a hard fork introduces a risk of sharply reducing the available hash power (vital for maintaining network security), splitting the chain, and consequently dividing the community. The revolutionary fork results in a new currency, and despite potential gains, both sides suffer increased exposure to security breach owing to significantly lowered hash power, as well as significant market volatility and community infighting.

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#489
  1. A softfork is making previously valid blocks invalid and a hardfork is making previously invalid blocks valid.
  2. A hardfork could be done to expand the rules of consensus such as increasing the block size.
  3. Some of the risks with performing a hardfork are that network security is lowered by a split in hash power.
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#490

  1. A soft fork can be described as making previously valid blocks invalid. A hard fork makes previously invalid blocks valid.

  2. To create a new blockchain, to increase block size, to increase function.

  3. Losing hash power on one blockchain vs another (miners overwhelmingly choosing one vs the other) and be less secure as a result.

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#491

difference between soft fork and hard fork is with a hard fork a new chain is created.

if there is a disagreement in consensus among miners this would be a reason to perform a hardfork.

some of the risks of hard forks include lessened security due to lower hash power because theirs a division in the miners which could lead to a potential compromise in the integrity of the blockchains. also the fact the original community is divided.

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#492

  1. A soft fork contracts the consensus ruleset, a hard fork expands it

  2. To allow a new type of consensus within the network, which is more permissive

  3. The hashpower is split into two chains, reducing the security of the chains. It also splits the community in two.

1 Like
#493

Homework on Soft and Hard Forks - Questions

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

    A soft fork is associated with a contraction of the rule set, effectively setting smaller limits on block size. A hard fork is associated with an expansion of the rule set, or larger block sizes. Soft forks tend to foster community, do not necessarily split the chain and can set up a situation whereby the majority tends to rule, although there is a general confusion among the nodes and a lack of validation. With a hard fork, the update will be very clear and in certain ways can be more democratic among nodes, however, there will be a chain split, a reduction in security, and a hash power split.

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

    Hard forks are a way for the community to negotiate necessary further development of the rule set. If those that are for the changes and those that are against the changes generally come to around 50/50, a hard split will be a way for both parties to get what they want. This also means that a new currency can be created along the two separate forks created.

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

    The risk associated with a hard fork include less security due to the hash rate being halved. Investors may become wary of funding such a split and anonimosity may arise between the new adopters versus the old. In general, the market may destabilize.

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#494

Homework on Soft and Hard Forks

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

Hard Fork

  • A hard fork makes previously invalid blocks valid.
  • A hard fork almost always causes a split in the blockchain
  • A hard fork causes a split in the community
  • A hard fork creates a new currency
  • Hash power is split

Soft Fork

  • Makes previous valid blocks invalid.
  • If majority of nodes update then there is no split in the blockchain
  • Does not cause a split in the community.
  • No new currency is created.

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

Updates are usually made to consensus rules. Consensus is the rules based on which the blockchain is run and has to do with security. Some might think the rules are too restrictive and would want more blocks to be valid as a result of which a hard fork might be necessary. It can also be used to create a new currency if that is the intention of the community.

What are some of the risks with performing hardfork?

  • The miners in the community will be split therefore reducing security.
  • The community around the currency will split up.
  • Hash power reduces which also reduces security.
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#495
  1. A soft fork makes previously valid blocks invalid (contraction), and a hard fork makes previously invalid blocks valid (expansion).
  2. A change in consensus rules e.g. - new block size.
  3. A loss of hashpower and a split in the community.
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#496
  • What is the difference between a softfork and a hardfork? a hardfork is an update that makes previous invalid blocks valid, so en extension of the rule set, and a soft fork makes previous valid blocks invalid, so a contraction of the rule set.
  • What are some of the reasons why you would do a hardfork? a change in the rules by consensus.
  • What are some of the risks with performing a hardfork? it splits the community as it creates two versions of the chain until all nodes are updated and this reduces security.
1 Like
#497

  1. Hard fork is caused by previously invalid blocks becoming valid and Soft forks by previously valid forks becoming invalid. For the network to become stable in a hard fork scenario it is needed to all of the miners get the update but in the soft fork scenario it is enough if atleast 51% of the network is updated.

  2. You want to add some rules for consensus. You would want to raise the profitability of miners, because if the block size is bigger there might be more utxos and there for more transaction fees for the miner.

  3. Splitting the comunity, There is a huge chance there will be a fork and every one will be ok only when the whole comunity has done the update.

#498
  1. What is the difference between a softfork and a hardfork?
    • A softfork makes a previously valid block invalid while a hardfork makes a previously invalid block valid.
  2. What are some of the reasons why you would do a hardfork?
    • To update the consensus rules to accept larger block sizes
    • To add new op_codes to the protocol
  3. What are some of the risks with performing a hardfork?
    • Split in hash power between the 2 chains and split amongst the community
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#499

What is the difference between a softfork and a hardfork?
A hardfork makes previously invalid protocols valid whereas a softfork does the opposite, make previously valid protocols invalid.

What are some of the reasons why you would do a hardfork?
To alter the protocol of bitcoin in order to introduce added or increased functionality. For example to increase the block size or to increase the block time

What are some of the risks with performing a hardfork?
Hardforks will likely create a new and independent blockchain as they will require consensus bvetween all nodes on the network. Any nodes which do not update to the new protocols after the hard fork will not be able to participate in the new hardfork blockchain because they will not accept the new expanded rules of the hardfork chain.

This will mean that there is a split in the community and a reduction in hash power on the both the original and the new chain.

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#500

Actually it’s more about consensus rules in general for Blocks etcetera

#501

  1. You need to update bitcoin core software or some other implementation.

  2. It depends on the new ruleset. Increasing 21m btc maximum supply, would require a change in consensus rules . You could do it in multiple ways. For example more blockreward or more time between halving or lower blocktime. There are many parameters in consensus rules where you can tweak things. But it would be hard to convince the community to update and change to your rules.