Homework on Soft and Hard Forks - Questions

[Kevko]

1. softfork where previously valid blocks are made invalid whiltst a hardfork is where previously invalid blocks become valid.
2. If the consensus needs to be changed.
3. The network can split if the community does not agree on the changes.

[knasten]

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

2. It is a change of the consensus rules.

3. A hard fork splits the blockchain and the community.

[Farid]

1. A hard fork happens when a part of the network decides to lower their requirements for a block to be correct and starts accepting blocks that were considered invalid before. Since these blocks can never be accepted in the blockchain that still uses the old rule, a completely new blockchain is created.

A soft fork happens when a part of the network decides to increase their requirements for a block to be correct and starts accepting fewer blocks than before. Since all of these blocks are also valid for the rest of the network that still uses the old rules, the blockchain does not need to split necessarily.

In reality though, if the new rules are applied by less than 50% of the network (calculated by hashing power), a hard fork will happen. This is because the stronger part of the network will be faster in doing Poof of Work and the chain that includes more PoW is considered valid, against all others, which become invalid immediately. Therefore the group that uses the new and stricter rules will need to be faster, because only then its blockchain will be considered valid by the miners that use the old, more relaxed rules.

If it can’t be faster though, a hard fork will happen, because the miners using the new rules cannot accept and continue the blockchain that included blocks that are only valid under the previous more relaxed rules. They therefore either have to overtake the whole network with their new rules or split the blockchain.

2. Because you want to change a cryptocurrency’s consensus rules in a way that previously invalid blocks will be considered valid - for example blocks that were previously considered too large. Other reasons might be that the community is seriously split about some fundamental aspects of the currency and different groups want to go their own way.

3. One of the main risks is that each new chain will lose hashpower from splitting the network, meaning that the new and smaller networks will be easier to overpower (attacking the blockchain, manipilating for double spending and such).

[Mauro]

Hi Robert. I am sorry for the late reply. I am glad I helped you in expanding you knowledge. Your answer was great.

[Mauro]

@Zee2020

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

A soft fork decreases the block size that can be accepted. A hard fork increases the block size that can be accepted into the network.

While this is correct, forks do not necessarily have to be connected only with the blocks. Soft forks contract the rules, while hard forks expand them.

[Mauro]

@slvrsrfr

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

While an update can improve performance, it does not have to. It could have been a bug fix for example.

@slvrsrfr

3. Hard folks can create 2 different coins.

Additionally, hard forks can cause a hash split (lowering security of both networks), community split and can open up a replay attack if the fork is not done correctly.

[Mauro]

@Yrius

Secondly, if you can create new paths, what would make the new cryptocurrency different from today’s economy which few drives many people destiny?

I don’t understand this question. Mind rewording it for me?

[Mauro]

@Flaflaflohi

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.

The nodes that accept the fork update will be the one that create the new chain/currency. The ones who do not update will continue to be the part of the old chain and follow the old rules.

[Mauro]

@Elvis

2. A hard fork would be done if consensus needed to be changed.

A hard fork can be caused by many other changes. A consensus change is a good example that would require a hard fork.

[Mauro]

That is a great answer. Keep up the good work Luna.

[Mauro]

@Shawn1

3.during an hard fork the power slits in two chains lowering the security

It can lead to the chain split, but It does not have to if everyone agrees or disagrees. Its a risk we take when performing a hard fork.

[Storm.chain]

1. The major difference stated in the lessons is that soft forks make valid blocks invalid, and hard fork makes invalid blocks valid.
   Other differences include hard forks splitting the community., and soft forks keeping it.
   hard forks are very clear cut, and soft forks can be confusing for the network.
   Network operators prefer soft forks over hard forks due to the community being less divided, and the network rules being tightened instead of loosened.

2. A hard fork is necessary when changing consensus rules, or if a new currency is breaking off from the old blockchain.

3. Downsides to hard forks include splitting the community, causing network confusion between old and new blocks, causing miner capitulation when people move over to the new network etc.

[Yrius]

Hi Mauro, thanks for commenting my answer. I wanted to say that…by creating forks, besides the community devision, you are may diverging from the original idea of decentralization by interfering in the structure of the coin. For instance, the way BTC was built, was to have a balance between blocks rewards and fee. Once you increase the size of the blocks based on interest , fees may drop and this balance is affected impacting miners/coin structure.
With that, I compared this situation with government and central banks that can increase taxes when they want (centralized) impacting the free the market.

[IAmBean]

@ivan

• What is the difference between a softfork and a hardfork?

Softfork makes previous valid nodes invalid. They are a tightening of the ruleset. They are still backwards compatible so that nodes don’t have to update to the new rules to continue; whereas Hardforks make previous invalid nodes valid. They are an expansion of the ruleset, and are not backwards compatible. Therefore all nodes on the network must update to this new version or be left behind with their version.

@ivan

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

Increasing the block size for example. Bitcoin Cash, SV, Diamond, Gold etc are all examples of hardforks. I’m only familiar with BCH which was forked because they wanted to increase the blocksize.

@ivan

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

Splitting the community (ie BCH) and reducing hash power because of less nodes on the network.

[Crypto_James]

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

A soft fork makes previously valid blocks invalid. A hard fork makes previously invalid blocks valid. Soft forks are a contraction in the rule set, while hard forks are an expansion in the rule set.

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

If you wanted to change the rules of consensus. Like perhaps you want larger block sizes going forward.

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

You run the risk of splitting the community and splitting the hash power.

[ankit_7]

1. Hard Forks make previously invalid blocks valid whereas soft forks makes previously valid blocks invalid. Hard forks split chain whereas soft forks don’t.

2. Hard forks may be done to perform a clear and democratic upgrade of current network. It is done for performance improvements.

3. Split of coins and distributed miners causing danger to security. It will split community and degrade trust in the token.

[Edward_Valencia]

1. What is the difference between a softfork and a hardfork?
   A softfork is a type of contraction in system where valid transactions would now be considered invalid. In hard fork it’s the opposite. There is an expansion and miners can decide to continue to mine without needing to update to the new consensus.

2. What are some of the reasons why you would do a hardfork?
   If miners want to start an new chain with a different set of rules. It’s viewed as more democratic where miners get to chose where to mine.

3. What are some of the risks with performing a hardfork?
   Some risks are loss in hashpower which means less security. Another is the splitting of coins which can lower the trust in them.

[rontrader9]

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

A hardfork expands the ruleset, allowing previously invalid blocks to become valid,
softforks reduces the ruleset, making previously valid blocks become invalid

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

A large number of the community wishes to change consensus rules such as increase the maximum block size.

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

Community split
Hash power split
Network security reduced

[edstar]

What is the difference between a softfork and a hardfork?

A softfork remains on the same blockchain as the updated consensus rule set is contracted making previous valid blocks invalid, where a hardfork will break off to create a new blockchain as its new consensus rule set is an expansion of the rule set, previous invalid blocks will become valid on the new chain.

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

Community agreement split, new currency, clear upgrade, fix protocol bugs.

What are some of the risks with performing a hardfork?

Reduction in hash power as this will make the blockchains less secure.

Community split.

[laclaire]

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

Softfork is a contraction of the consensus rules because it makes previously valid blocks invalid.

Hardfork is an expansion of the consensus rules because it makes previously invalid blocks valid.

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

To add functionality or to maintain or change the rules of consensus.

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

It splits the community, reduces the number of miners and therefore hash power thus reducing security.