Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#843

On the second point - at this point I understand what a node is. I was talking about the bigger adoption picture. It’s one thing to say “don’t trust, verify.” But in reality for the average person to start using Bitcoin he or she will absolutely need to trust this trust-less environment. And when they hear about their transactions being invalidated and delayed because they were placed on the wrong blockchain - and they don’t understand the system, don’t know what a node is - it will not inspire them to participate further.

I am just starting to learn myself, and just thinking about bigger picture issues (eg mass adoption) as opposed to specific technology questions.

Thanks - I appreciate you following the questions.

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#844

What is the difference between a softfork and a hardfork?
A hard for is an expanding type of update in the rules whereby blocks that were previously invalid are now valid. I.e. going from 1mB to 2mB block size. This would mean anyone who follows the 1mb maximum block size rule cannot accept and validate the 2mb block. This rule is a mutually exclusive type of rule which splits the blockchain.

A soft fork on the other hand is a tightening of the rules, making previously valid rules invalid. The example we can look at here is going from a 1mB maximum block size to a 0.5mB block size. The miners following the old rules of 1mB block size can thus still accept a 0.5mB block as it does not exceed the maximum block size stipulated.
This rule is therefore not mutually exclusive, and can lead to confusion whereby blocks are accepted but cannot really be understood and properly verified, leading to some security concerns.

What are some of the reasons why you would do a hardfork?
Improving efficiencies in the protocol, creating new currencies or for moving away from bugs so that miners no longer follow the malicious blockchain.

What are some of the risks with performing a hardfork?
Losing hash power and consequently reducing the level of security. The uncertainty around the future of the split can also weaken the currency as people lose confidence and sell.

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#845
  1. Hark forks make changes that don’t work within the current rule set. Soft forks make changes that can work inside current rule set.
  2. Add functionality to network that can’t be done inside the current spec.
  3. The network could split with the community not agreeing on the changes.
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#846

  1. What is the difference between a softfork and a hardfork?
    Softfork: A softfork makes a change in protocol/rules that makes some previous blocks invalid shrinking the parameters.
    Hardfrok: A hardfork makes the protocol larger to include previous invalid blocks make them valid.

  2. What are some of the reasons why you would do a hardfork?
    if you wanted to add functionally to the network rules/ protocol in a clear and democratic way. (The vision on the network has changed to included more guild lines)

  3. What are some of the risks with performing a hardfork?
    The amount of hash power will be lowered due to creating two separate networks. This also creates a network with less security and new currency

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#847
  1. Hard fork occurs with expansion of the rule set update applied to the blocks previously invalid to valid. Creation of the soft forks occurs with contraction rule set update to downsize the blocks to go from previously valid to invalid.
  2. Change in consensus rules.
  3. Hash power/chain/community split, reducing security of the network.
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#848

  1. A soft fork makes previously valid blocks invalid and a hard fork makes previously invalid blocks valid.

  2. It’s more democratic to do a hard fork, it also improves performance.

  3. Hard folks can create 2 different coins.

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#849

  1. Soft Fork update makes previous valid blocks invalid (Contraction), and Hard Forks does the opposite, makes previously invalid blocks into valid (expansion)

  2. Hard Forks could be done to create new currencies and split the community based on ideas and assumptions of the new chain.

  3. By creating new chains and creating new currencies, firstly you may lose the power of the crypto community which is not YET robust by breaking into smaller pieces fighting for space, also impacting the hash power. Secondly, if you can create new paths, what would make the new cryptocurrency different from today’s economy which few drives many people destiny?

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#850

  1. A hard fork makes previously invalid blocks valid and expands the rule set. A soft fork makes previously valid blocks invalid, and therefore contracts the rule set. A hard fork will usually result in a splitting of the chan and a new currency, whereas, a soft fork will follow the majority.

  2. If you have a group of nodes who want a rule change and another group that does not, the nodes who do not want to change can group together and not perform the update, thereby creating their own chain and a new currency.

  3. In the case of a hard fork, you will have a split in the community and therefore a split in overall hashpower.

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#851
  1. A hard fork update is an expansion of the rule set and previous invalid blocks are valid where a soft fork is a contraction of the rule set and valid blocks are now invalid.
  2. A hard fork would be done if consensus needed to be changed.
  3. The risk would be split hash power and a less secure network and a split chain.
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#852
  1. A softfork is an update which is tightening the rules, a hardfork is enlarging the rule set.
  2. If I would like to create a new currency with increased block size
  3. It splits the community, reduces the hash power and with it the security of the network
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#853
  1. Hardfork makes previously invalid blocks valid. Softfork makes previously valid blocks invalid.
  2. System update. A change in consensus over rules.
  3. Split the community. Split hash rate. Creation of new chain.
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#854

A hard fork can be used to update the blockchain, which means fixing problems and adding more functionality. Sometimes a hard fork is forced by the community because a minority is not happy about the direction in which bitcoin is heading, so they decide to split the chain and create a new coin.

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#855

1.an hard fork makes invalid blocks valid an soft fork make previous blocks valid
2.an change concensus
3.during an hard fork the power slits in two chains lowering the security

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#856
  1. a softfork makes a previously valid block invalid; a hardfork makes a previously invalid block valid.
  2. To expand the conditions of validating a block
  3. You split the community. You are less secure because there are less miners and nodes.
#857
  1. Hard fork leaves two chains from one root and two seperate paths are created the new path with the expanded ruleset and the previous path and a softfork keeps the main chain the main chain just with contracted rules.
  2. If there is a fundamental difference of philosophy behind a coin then one may want to hard fork.
  3. Some of the risks is if the miners and community dont support the hard fork as expected, there is a risk it wont get picked up and supported as well as expected and with low hash power supporting could pose a security risk.
#858

1.A hardfork makes previous invalid blocks becomes valid, a softfork makes previous valid blocks becomes invalid.

  1. Democratics and cause split in chains which might be able to seperate different updates and visions

  2. Thinning the community which will drop the hash rate and make it less securit.

#859
  1. Hard fork makes previously invalid blocks valid and a soft fork is the opposite. Makes valid blocks invalid.
    2.You would do a Hard fork because its a very clear and democratic way to update. Nodes can choose which chain they would like to follow opposed to being forced into an update.
    3.Split the hash power & divide the community
#861
  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?
    A change in direction
  3. What are some of the risks with performing a hardfork?
    Security vulnerability
#862
  1. In hard fork there is expansion in rule set and previously invalid block becomes valid, in soft fork there is contraction of rule set and previously valid blocks becomes invalid.
  2. Change in consensus rules and outlook on current chain.
  3. Split in the hashrate which can decrease security, and split in community.
#863

1.What is the difference between a softfork and a hardfork?
Answer: A softfork restricts the polcicy rules while a hardfork expands the policy rules (previously invalid becomes valid). A softfork is backwards compatible, while hardfork is not. A hardfork is usually a planned and publicized update.
2.What are some of the reasons why you would do a hardfork?
Answer: Planned and clear update rule. Avoid the risk of inadvertenly creating different versions of bitcoin with different rules.
3.What are some of the risks with performing a hardfork?
Answer: The risk is that many miners will not adopt the new fule, and that transactions mined actually will conform to old rules. Then there will be no split. Eventually the new rule should prevail, but there is a risk that it will take a while to “win” and perhaps economic incentives.