Homework on Soft and Hard Forks - Questions

Blockchain and Bitcoin 101
#1167

  1. A hard fork is an expansion of the rule set and a soft fork is a contraction of the rule set. For example if the update goes from 1mB to 2mB then this is an expansion of the rule set that made previously invalid blocks valid and therefore would be a hard fork. While a soft for would be something like 1mB going to 0.5mB which would make previously valid blocks invalid.

  2. It would create a clean update meaning that the old miners would continue adding to the new fork and their fork if its under 1mB and the updated miners will continue on with the 2mB chain. Since it creates two chains those that want to continue can and those that don’t can continue on their own chain.

  3. Since you need 100% of the network to update there will be a fork. This would create two chains and two currencies and in turn would split the community. More importantly it splits the amount of hashpower checking the validity of blocks and therefore the security of both currencies are weakened.

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#1168

Yes, but reducing/increasing the block size is just one example of a change in the rule set that produce a SF/HR respectively, and there can be other type of changes.

#1169

Wow! Amazing answers! Keep that attitude!! :muscle:

Felipe.

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#1170
  1. What is the difference between a softfork and a hardfork? A hardfork needs 100% of the network to agree to the update or the blockchain splits. A softfork maintains the blockchain by majority.
  2. What are some of the reasons why you would do a hardfork? When it is clear that an update is required and the community is in full agreement.
  3. What are some of the risks with performing a hardfork? The chain, community and hash power are split.
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#1171
  1. a. Soft fork makes previously valid blocks invalid.
    b. Hard fork makes previously invalid block valid.
  2. Maybe to make a new currency
  3. Getting all nodes to update
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#1172

  1. A softfork makes previously valid blocks invalid. A hardfork makes previously invalid blocks valid. This means a softfork will not necessarily split the chain it will only do so if over 50% of the miners don’t follow the update and continue following the old rules. A hard fork will almost always split the chain because it is not possible for miners that don’t follow the update to validate the new blockchain as it doesn’t fall under their rules.

  2. You would do a fork to make changes to the protocol. For example increase or reduce transaction time. or changing the block size. With a hardfork you will be making an update that expands the rules hence making invalid blocks valid. For example increasing the block size.

  3. A hardfork is likely to split the network, which reduces security.

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#1173

  1. A softfork contracts the protocol’s set of rules, i.e. previous valid blocks become invalid. A hardfork, on the other hand, expands the protocol’s set of rules, i.e. previous invalid blocks become valid.

  2. Some of the reasons why to do a hardfork could be to create a new currency, to increase the block size or to fulfil a sub-community’s strong which to run by different protocol rules (these determine if a block is valid or invalid).

  3. Some of the risks of performing a hardfork is the split of the network’s hash power; thus, reducing the network’s security. Or the split of the community. A large, committed and strong community are key to the success and the further development of a project/technology.

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#1174

  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 change in vision and consensus.

  3. During a hard fork the hash power splits into two chains, lowering security.

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#1175

Another one is a network update. One interesting example is Monero which has hard forks basically all the time to maintain their ASIC resistance. :slight_smile:

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#1176
  1. What is the difference between a softfork and a hardfork?

A softfork is a change in the rule set that makes previously valid blocks invalid (a contraction of the rule set), whereas a hardfork is a change in the rule set that makes previously invalid blocks valid (an expansion of the rule set).

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

You would do a hardfork when you do not agree with the current rule set and therefore in the absence of 100% of the network agreeing, a hard fork is required that contracts the rule set to the defined parameters you agree with. For example, if the block size is deemed too large and cumbersome, a democratic and clear way of differentiating would be for the miners who disagree with it to switch over to a new (hard) fork and a new blockchain (and therefore a new currency, where all mining participants who agree with the new rule set are clear on the new rules and how they work.

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

The risks of performing a hardfork include: the splitting of the chain, the splitting of the community (& for example when a hardfork of Bitcoin called Bitcoin cash again did another hardfork to Bitcoin SV, there was a lot of debate and some animosity in the Bitcoin communities). There is also a loss of hash power and therefore potentially security is diminished somewhat as some miners migrate to the new hard forked chain. Arguably the creation of a new currency is potentially a bad thing and (personally in my view) it creates some inflation, however this is likely to be contentious.

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#1177

Answers:

  1. A soft fork is define as making an invalid transaction valid whereas a hard fork is define as making a valid transaction invalid.

  2. A hardfork occurs when two miners picks up the same block of a same block height to mine. And when this occurs, it causes a chain split. In order to continue mine on the same block, the minor will send out an update for other nodes to come to a consensus.

  3. A hardfork reduces security by splitting the community which divides the hash power.

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#1178

Great answers. I would like to add that a hard fork may not only be caused by the disagreements in the community. A hard fork can be proposed as a mean of fixing a serious bug or an upgrade to the protocol that everyone wants. :smiley:

Hard forks that happen because of disagreements are usually bad and end up with the risks that you mentioned in the third answer. :confused:

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#1179

  1. Its the opposite. A soft fork makes the previously valid transactions invalid and a hard fork makes the previously invalid transactions valid. However it is better to replace the word transactions with a word blocks. Transactions are just a part of the block. Any change in the block will either cause us to need soft fork or a hard fork, depending if it is expanding or contracting the rules. :slight_smile:

  2. What you explain is true, but we were focusing on hard forks that are proposed by the community. What you explained are accidental hard forks that usually get resolved very quickly. Is there any change in the bitcoin you can think of that would require a hard fork?

  3. That is true. Keep in mind that this may or may not happen. Depending if the community is split in the proposed update. :smiley:

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#1180

Understood. Thank you for the feedback and additional insight, much appreciated :slight_smile: :+1:t3:

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#1181

No problem. I am glad I could help you understand more. Keep up the great work. :muscle:

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#1182

Forks

  1. What is the difference between a softfork and a hardfork?
    A soft fork and hardfork are both updates in the chain, which changes the consensus rules. A softfork, is an update, that makes previously valid blocks invalid. When a softfork occurs, different nodes will be abiding by new and old consensus rules. The updated nodes, will only accept the new updated rules, and ignore the other blocks, that are propagated to them with old consensus rules, while the old nodes, will accept both blocks, assuming the consensus rules are met. Both sets of nodes will continue building on their own chain, but if the majority of nodes are on the new chain, the old nodes will join the new chain, eventually making the previous chain invalid. A hardfork, is an update, that makes previously invalid blocks valid. If under 100% of the nodes did not agree to update to the new consensus rules, the fork occurs. A hardfork is done to change the protocol of the code, which causes the old nodes to accept the new update and deem those blocks invalid. For example, if a node that is not updated, accepts only 1mB blocks and a 2mB block is propagated to them, that node will ignore the block, seeing that is does not fall into its consensus rules.

  2. What are some of the reasons why you would do a hardfork?
    Having a hardfork occur, can mean that other nodes in the network do not agree with the current consensus rules. The nodes may see that higher block sizes are needed to prevent less congestion in the network, also a different currency can be made, a new community wants to form, and other nodes see many issues with the current consensus rules and want a change of some sort.

  3. What are some of the risks with performing a hardfork?
    Performing a hardfork, will cause risks. Typically when a hardfork happens, certain nodes do not agree on the current consensus rules and want to make changes. By doing a hardfork, a split in the chain can occur, causing some nodes to update to a newer version. Another risk with performing a hardfork, can be the community splitting. Some community members may not agree on the current structure of the currency. Also if they propose a change and it is denied, that could cause them to form another community, that supports their idea. Another risk is lowered security. Hardforking, will split nodes into different chain’s, assuming that some nodes do not choose to update, causing less hashing power, meaning less network security.

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#1183

  1. A Hard Fork requires 100% consensus agreement to the Proposed Rule change and it is an Expansion of the rule set which makes previously Invalid Blocks now Valid and it results in a clear update as to which chain you are on. This splits the Chain, the Community, and the Hash Power of each. WHEREAS
    A Soft Fork is generally the opposite of the Hard Fork. It does not require 100% consensus agreement for the Proposed Rule change and is a contraction of the rule set since previously Valid Blocks can be made Invalid. If more than 50% vote to change eventually there would be No Fork or Chain Splits and the Community would be the same. This may create confusion as to what any rule change mean since majority rules.

  2. 100% Consensus Agreement, a Clear Update as to which chain or fork you are on, this new Fork (following new rules set) would create a new token or currency (like BCH).

  3. It splits the Chain, the Community, and the Hash Power which could lessen the overall security of the system, and some may object to the new token or currency.

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#1184

Wow thanks for the further clarification. It encourage me to research more online. As for question one I will take note of using these words, transaction and blocks more specifically. Will bear that in mind. Otherwise it was a careless mistake of me on explaining the difference of hard and soft fork without double checking.

  1. I couldn’t think of any, but after further researching it came to my understanding that a hard fork can be implemented, such as correcting important security risks found in older versions of the software, to add new functionality, or to reverse transactions.

  2. Noted and will keep in mind.

Kudos Mauro, I couldn’t be more grateful on your guidance!!

#1185

  1. What is the difference between a softfork and a hardfork?
    a hard fork makes previous invalid blocks valid and a soft fork makes previous valid blocks invalid

  2. What are some of the reasons why you would do a hardfork?
    If you want to split the chain because you dont agree with new rules and it becomes a new chain.

  3. What are some of the risks with performing a hardfork?
    You split the chain and essentially reduce the hash power of the old chain that reduces security of it.

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#1186

  1. Hardforks needs 100% update of the node’s network to be implemented whereas Softworks only needs 50% of the hashpower of the network.

  2. To update the block size , to create a new coins ; to make more efficient the network.

  3. Some risks are : Split of the network ; Split of the community ; Confusion and the lost of interest in the crypto space for newcomers.

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