Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#41

Homework on Soft and Hard Forks - Questions

  1. What is the difference between a softfork and a hardfork?
    -Hard fork makes previously invalid blocks valid and soft fork makes it vice versa.
  2. What are some of the reasons why you would do a hardfork?
    -to change consensus rules set
  3. What are some of the risks with performing a hardfork?
    -splitting community, splitting hash power which lowers security
#42

  1. A soft fork is created by a contraction in the block rules, a hard fork is an expansion.

  2. A hard fork may be required if the previous protocol is insufficient for serving the purpose of the blockchain, such as too small a blocksize.

  3. The hashing power will be distributed between the two resulting chains.

#43

  1. A softfork makes previously valid blocks invalid, while a hardfork makes previously invalid blocks valid.

  2. One might do a hardfork to expand on the consensus rules in regards to what is an acceptable block. In other words a hardfork might be used to expand the acceptable rules.

  3. Risks with performing a hard fork are reduced security, and a division of the mining community.

#44
  1. A hard fork makes previesly invalid blocks valid and a soft block makes priviesly valid blocks invalid.
  2. By making a hard Fork the miners can choose what type of chain they want to mine on. it gives a libetarian layer to the update.
  3. Splitting the community also means decreast hash rate and decreast safety on the blockchain.
#45

Softfork - makes previously valid blocks invalid

hardfork - makes previously invalid blocks valid

Clear update
split chain, spit community, split hash power rate reduce security

#46
  1. Expansion of rules leads to a hardfork and a contraction leads to a softfork.
  2. To start a new coin. To expand consensus rules.
  3. It brings a risk to security by splitting hashpower. It splits community.
#47

  1. A hardfork is a change to the rules that makes previously invalid blocks valid, such as for example increase of block size. It creates a new separate blockchain. A soft fork makes previously valid blocks invalid, such as a reduction of block size. The nodes that don’t update can still validate the new blocks with new rules. This does not create a new blockchain, as over time the systems choses the longest chain.

  2. If one wants to create a new cryptocurrency ( such as Litecoin, Dogecoin, etc ) one can do a hard fork and use the current infrastructure of Bitcoin to build on. If for some reason there is a split in the community ( such as with “prophets” like the Faketoshi ) they can also do a hard fork and split the blockchain ( as well as the community ).

  3. Loss of hash power due to the creation of a new block chain ( case example with bitcoin cash and Bitmain network dominance )

#48

  1. They are a change on the network consensus where:
    A Hard Fork makes invalid previously Blocks valid, resulting in inclusion on the network. Need entire network nodes to update to avoid Stale Blocks.
    A Soft Fork brings exclusion and needs at least 50% of adoption by the network.
    Hard Fork are seem to be more complicated.

  2. If there’s a need to make a big change on the network consensus.

  3. Hard Forks need all nodes to update otherwise would be generate many Stale Blocks and the chain would be split.

#49

A softfork is where valid blocks get invalidated due to the introduction of a new rule.

A hardfork is where a new rule expands the conditions by which blocks are validated. (I’m not clear about the notion that “prevlously invalid blocks are now valid” because how would invalid blocks be produced if the rule (that they haven’t yet updated to) hasn’t allowed them to be produced in the first place?)

A hardfork is introduced where some of the network community believe that the protocol can be improved upon. They have a different concept that they believe makes a better currency.

Another reason for introducing a hard fork is to make money. A successful new currency will have real-world value that makes it an attractive proposition.

There can be other reasons such as: Transaction speed, security, marketing concepts.

Risks with a hardfork: Some of the network gets “hived off” and this reduces the overall hash power of the network. The greater the hashing, the more secure the network.

Another risk is that the new currency competes with the original currency. This could reduce the original currency’s power in the overall crypto market.

#50

What is the difference between a softfork and a hardfork?
A soft fork is a contraction in consensus rules that makes previously valid blocks invalid (ex. decreased block size). A hard fork is an expansion in consensus rules that makes previously invalid blocks valid (ex. increased block size).

What are some of the reasons why you would do a hardfork?
Do a hard fork in order to allow more transactions into a block, to create a new currency/coin.

What are some of the risks with performing a hardfork?
The risks of a hard fork are splitting the community, adoption risk, and decreased hash power and network security.

#51
  1. A hard fork makes previous invalid blocks valid, Expansion of the rule set.
    A soft fork makes previous valid blocks invalid. Contractions of the rule set
  2. A hard fork can only be done if there is 100% consensus about the new ruleset.
  3. You split the chain and get both less hash power and less security for the network.
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#52

1.Hard fork is a expansion of the rule set and tend to create a new blockchain
Soft fork is a contraction of the rule set and tend to resolve back to the original blockchain

2.Hard fork are a way to create a new project using existing workable blockchain, not staring from scratch
Very clear project goals

3.Risk with hard fork, split hash and compromise security, split community and waste time on politics in crypto

#53

  1. What is the difference between a softfork and a hardfork?
    A soft fork will make previously valid blocks invalid and a hard fork will make previously invalid blocks valid.

  2. What are some of the reasons why you would do a hardfork?
    If you wanted to change the consensus model.

  3. What are some of the risks with performing a hardfork?
    You can split the community
    You reduce the hash power available to both forks and thus reduce security

#54

  1. A soft fork doesn’t break the blockchain while a hard fork does. SF also work within the set of rules of the original protocol.

  2. If you wanted to create a new currency, and to open the rules for the nodes.

  3. Hash rate reduced so security decreases.

#55

  1. Hard fork - previous invalid forks are now valid = Expansion of rules
    Soft fork - previous valid blocks are now invalid = Restriction of rules

  2. If you want an expansion of the rules. More democratic and easier to understand where you stand.

  3. decrease in hash power, and splits the community.

#56

Homework on Soft and Hard Forks - Questions

  1. What is the difference between a softfork and a hardfork? Hardfork makes previously invalid blocks valid. Softforks makes previously valid blocks invalid.
  2. What are some of the reasons why you would do a hardfork? A change to consensus rules.
  3. What are some of the risks with performing a hardfork? Risks with performing hardforks: security issues with hash power being divided, along with the community and currency.
#57
  1. A soft fork results from a contraction of the rules where eventually everyone ends up using the new rules. A hard fork results from an expansion of the rules where the chain splits into two distinct blockchains.
  2. To change the rules, or make improvements that not everyone agrees with.
  3. When the chain splits, there are fewer miners on each chain, making the, now 2, networks less secure. It also breaks apart the community and results in a new currency.
#58

1. What is the difference between a softfork and a hardfork?
A hardfork makes previously invalid blocks valid. A softfork makes previously valid blocks invalid.

2. What are some of the reasons why you would do a hardfork?
There is no confusion regarding the rules and it’s more democratic.

3. What are some of the risks with performing a hardfork?
The community splits, there will be two currencies and the networks will be less secure because of the division of hash power.

#59

  1. softfork doesn’t fork off nodes because the changes being proposed do not invalidate previous blocks. a hard fork spits the network.

  2. to alter the consensus in a way that makes the existing blocks invalid.

  3. splitting the network, miners have to use incompatible consensus and all resources have to choose one chain or the other.

#60
  • A soft fork update makes blocks that previously were valid invalid. A contraction of the rule set, where the new rules still fit within the old rules, is a soft fork update.
  • A hard fork update expands the rule set. Blocks that were previously invalid, now would be valid. For example, the new rules allow for bigger blocks.

  1. The main reason to implement a hard fork update is to expand the rules, because the community agrees that the old rules have become inefficient. If the community doesn’t agree, the goal of a hard fork could creating a new currency. This method is more democratic, because only those who agree with the update have to “join” the blockchain with the new rules. Also, there will be no confusion for nodes, that didn’t update, whether a block is mined with the new or the old rules.

  2. With a hard fork, the network must upgrade in order to be able to still mine blocks. If a minority or a majority does not agree with the update, the blockchain will be hard forked into two different chains that can’t talk to each other anymore. This also splits the hash power of the network, making each of the networks less secure.

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