In the world of blockchain technology, forks are events that change the network's protocol and are divided into two main types: hard forks and soft forks. These changes impact the network's functionality and require attention from all participants.
What is a Hard Fork?
A hard fork in blockchain is a significant change to the network's protocol, requiring all nodes to follow new rules. If there is disagreement among miners and not all of them accept the new rules, a chain split can occur. This results in two separate blockchains: the original and the upgraded version. Hard forks are implemented for various reasons, such as the hack of the Decentralized Autonomous Organization (DAO), leading to the Ethereum fork.
What is a Soft Fork?
A soft fork is a change in the protocol that remains compatible with the previous version, which means not every user needs to upgrade. Soft forks can introduce new features or reverse transactions. A soft fork is complete when the majority of miners adopt the change, and the blockchain returns to a unified chain. However, if most miners revert to the old version, consensus may break.
Difference between Hard Fork and Soft Fork
A hard fork is like starting a new chapter in a book where everything changes and there's no going back to the original story, creating two distinct blockchains. A soft fork is more like editing a chapter to improve it without disrupting the storyline, with fewer obstacles and no network split.
Understanding the differences between hard and soft forks is crucial for blockchain participants as they affect how the network functions and how changes are implemented.