Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#682
  1. What is the difference between a softfork and a hardfork?

Both types of forks are updates to the consensus rules. A hard fork is an expansion of the rules. Soft fork is a contraction of the consensus rules. In practice, a soft fork doesn’t result in a fork in a chain.

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

One of the benefits of a hard fork is that there is a clear break in chain with both consensus rules continuing.

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

The risk is that there is a split in not just the chain but also in the community. It also fragments the hasp power.

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#683
  1. A hardfork is an update to the consensus rules that make previously invalid block valid. It means that the rules are less strict. Therefore more different kinds of blocks are accepted by the miners who updated. However, since most of the time, 100% don’t update, you end up with two groups of miners, one of which doesn’t accept blocks that follow the new rules, and therefore a chain split.

A softfork however is an update that makes previously valid blocks invalid. It means that the rules are more strict. Therefore even if all the miners don’t update, all of them will validate the new blocks because they fit in everyone’s rules. A chain split can still happen if less than 50% of the hash power does not update.

So in order for a hardfork to have no chain split you need 100% of miners onboard whereas you need only 50%+ with a soft fork.

  1. Example would be to increase the block size in order to have more transactions in each block and increase spead of the network.

  2. The risks are a chain split, split of the community, splif of hashpower and therefore of security of the network.

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#684

1.A soft-fork is a change in the blockchain protocol that RESTRICTS the rule-set which is enforced by the network nodes. With a soft-fork upgrade a block which is deemed valid before implementation will be considered invalid by updated nodes afterwards if it breaks the new rules. For a soft-fork upgrade to work only a majority of the hashpower is needed to be in favour of the change, and those who resist the change are kept on the blockchain anyway, but with the new rules that they don’t recognise. However, if the majority choose against the upgrade this new version will become redundant.
A hard-fork is a change in the blockchain protocol which LOOSENS the rule-set enforced by the network nodes. With a hard-fork upgrade a block which is considered invalid before the hard-fork is implemented will be considered valid by the updated nodes if it conforms to the new rules. Additionally, a hard-fork upgrade is not backwards compatible - meaning any new version will not work with previous versions - so the fork cannot be reversed. Furthermore, the nodes which upgrade go on the new blockchain, and those which don’t stay on the existing blockchain. In other words, each node goes on the blockchain it chooses.

2.Some of the reasons you would do a hard-fork are; a) you need to increase the block size on the blockchain, b) an upgrade is urgent, due to broken code, a need to redistribute funds, or to prevent a serious network abuse, c) because you consider a hard-fork to be more democratic than a soft-fork because everyone gets to choose the way forward for themselves.

3.Some of the risks of performing a hard-fork are; a) the community could be damaged due to the politics involved, b) there is the difficult decision about who should make the decision to hard-fork, and under what circumstances, c) any loss of hashpower resulting from the split could compromise network security, and d) the decision to hard-fork cannot be reversed once it has been implemented.

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#685

What is the difference between a softfork and a hardfork?
A soft fork makes invalid the previous blocks by the new rules; a hard fork doesn’t
What are some of the reasons why you would do a hardfork?
Expanding the consensus rules may have several advantages. One might be to make a more efficient value
What are some of the risks with performing a hardfork?
Dividing the chain and the community.

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#686

  1. What is the difference between a softfork and a hardfork?
    A hardfork will make previous invalid blocks valid, while a softfork will make previous valid blocks invalid.

  2. What are some of the reasons why you would do a hardfork?
    A hardfork still follows the consensus rules and is democratic.

  3. What are some of the risks with performing a hardfork?
    A hardfork will usually split up the community and create a new currency, as well as split hashrate which reduces security.

#687
  • What is the difference between a softfork and a hardfork?
    A soft fork will continue to run on the same chain and a hardfork creates a new one. A soft fork makes changes that obide by current rules and a hardfork would change.

What are some of the reasons why you would do a hardfork?
To increase block size and change consensus

  • What are some of the risks with performing a hardfork?
    The hardfork hash power splits into 2 chains lowering security.
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#688
  1. A softfork makes previous validated blocks by the network invalid after the update. Hardforks are the opposite to that.
  2. To create a new currency, another reason is that it provides a democratic choice whether you want to continue to belong to the network pre-forking or continue to be a part of the new fork network. Programming-wise, perhaps you want to perform this fork because of speed of transactions, transaction fees, block sizes etc.
  3. You reduce the hash-rate, making the currency more susceptible to 51% attacks. There is no certainty in knowing future development, it can be made because of greed and personal gain. The change can also be disappealing to large investors.
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#689
  1. Hard Fork makes previously invalid block to valid and Soft Work makes previously valid block to invalid.
  2. Will be clear and democratic.
  3. Split chain, split the community and has power split.
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#690

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

A soft fork is an update that contracts the consensus rule set and makes previously valid blocks invalid.

A hard fork update is an update that expands the consensus rule set and makes previously invalid blocks valid.

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

You want to do an update that updates the consensus rules for 100% of the network.

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

A hard fork requires 100% of the network to update. So if even one node on the network doesn’t update, it wont take effect.

Hard fork updates will reduce the hash power and can lower security as a result.

#691
  1. What is the difference between a softfork and a hardfork?

Soft forks are exclusive to the blockchains previous rules and Hard forks are inclusive. Blocks that were once invalid are valid with hard forks, and blocks that were once valid are invalid with soft forks.

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

To add functionality within the network.

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

The chain loses hashing power because of the split, therefore, sacrificing some of it’s security.

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#692
  1. A hard fork usually makes the previous invalid block to valid and a soft fork usually makes a previous block valid to invalid.
  2. A hard fork would be done if the consensus need to be changed within the network.
  3. Its bad for the security as the hash power divides into two blocks.
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#693

1)Hard: makes earlier invalid blocks from now on valid (not backward compatible)
Soft: makes earlier valid blocks from now on invalid (backward compatibel)

  1. node-runners and miners can choose, which path one will continue, so there is no dead end, if you do not agree with the majority
    it is also a clear cut from the previous version of the protocol
    depending on your view: creation of a new coin can be seen positivly

3)community and chain are splittet, also leading to less hasrate = less security because of less miners, nodes.

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#694
  1. Softfork constrains rule set (previously valid block, is now invalid); Hardfork increases rule set (previously invalid block, is now valid)
  2. New currency; difference of community opinion, direction, future vision; modernization.
  3. Split chain, community split, security.
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#695

Thanks for clarification

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#696

  1. What is the difference between a softfork and a hardfork?
    Hard fork is the result of an expansion of the rules and make previously invalid blocks valid.
    Soft fork is the result of a contraction of rules and make previously valid blocks invalid.

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

  3. What are some of the risks with performing a hardfork?
    Hashpower decreases along with security.

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#697
  1. A soft fork is when there is a change in the update, its a majority vote, More hash power which results in the same chain, just amended consensus rules.

A hard fork is where the community decides on 2 protocols and creates a new chain, currency.

  1. A disagreement over the protocol and the consensus rules, maybe a proposal for larger block sizes.

  2. A split in the community, lesser hash power resulting is lower levels of security.

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#698

1.What is the difference between a softfork and a hardfork?
-Softfork - Update that makes previously valid blocks invalid
-Hardfork - Update that makes previously invalid blocks valid

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

3.What are some of the risks with performing a hardfork?
-Split community, split chain, less hash power = less secure network

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#699

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

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

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

1)A soft fork makes previously valid blocks become invalid.A hard fork makes previously invalid blocks become valid.

2)To make a new currency, and its also a clear update.

3)You would get a split chain, split the community and split the hashpower making the network less secure.

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#700

Q1: The main difference between a hard and soft fork is that a hardfork purpose is to make invalid blocks valid and results in the expansion of block rules. Whereas a softfolk purpose is to make once valid blocks invalid therefore contracting the block rules.

Q2: Reasons to perform hardforks are that new consensus rules are proposed and that a portion of the community might want to significantly change the currency environment to perform in a different way eg) BTC - BCH

Q3: Some of the risks in performing a hardfolk is that it requires 100% of the miner nodes to perform the update in order to avoid the fork so it can easily result in a split in the chain and the community as getting 100% of the nodes to update is extremely unlikely. In addition with a spilt in the chain comes a split in the hashpower and compromise the security of the blockchain.

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#701
  1. Softfork - A contraction of the cryptocurrency consensus protocol. This results in a blockchain that is backwards compatible with the old blockchain.
    Hardfork- An expansion of a cryptocurrency consensus protocol. This results in a new blockchain not compatible with the previous version.
    2.The purpose of engineering a hardfork is to construct a new blockchain, with new rules that are not compatible with older versions. As a result, an entirely new cryptocurrency will be created.
  2. The risks of performing a hardfork are that it can be a disruptive experience for the community. There are often competing views for the future of a cryptocurrency and this can lead to a point where traders and miners feel that they have no choice but to go their separate ways (split in the community). This will result in a split in hashing power which is damaging to the security of the blockchain.
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