Homework on Soft and Hard Forks - Questions

1.A Soft Fork contracts rule set and invalidate/exclude previously valid blocks, whereby the Hard Fork expands the rule set then validates/includes previously invalid blocks.
2. To change the rule set with the belief that the currency will enhance/include/expand for the better of all participants, but there a parts of the community that disagree which prefers to split from the group.
3. You split the community resulting that one currency splits into two currencies if not 100% are in agreement, resulting in reduced hash rate, thereby reducing security.

  1. A softfork makes previously valid blocks invalid while a hardfork makes previously invalid blocks valid.
  2. innovation
  3. If not everybody updates you will end up with two different chains.

1- Softfork is an update to the network rules that makes previusely valid block to be invalid
Hardfork is an update to the network rules that makes previusely invalid block to be valid

2- Inclrease the networks,

3- Reduce the network hashrates,

  1. Soft forks only need the majority of miners and nodes to switch over, which is why they are usually preferred. No anxiety about a battle between two chains. This is because the majority chain will have blocks that are still valid to the other minority chain. With a soft fork you are making previously valid blocks invalid. You are contracting the rules with a soft fork.

For a hard fork to not have another fork, you need to have 100% of the participants switch over. Otherwise you’ll end up with two. This is because blocks are considered invalid to people that don’t switch over. Hard forks make previously invalid blocks valid. You are expanding the rule set.

  1. A reason you might do a hard fork would be to increase the block size to be able to handle more transactions.

  2. Some risks of performing a hard fork is decreased security with a chain split because you have less hash power if it’s split between two chains, and also you may have participants of the network competing against each other between the two now separate chains.

  1. Soft fork restricts the ruleset enforced by full nodes.
    Hardfork loosen the ruleset enforced by full nodes.
  2. A hardfork is necessary when there are changes that are impossible to make backward-compatible with the old version. (Source: https://bytecoin.org/blog/reasons-for-the-hardfork)
  3. You run the risk that not all miners and nodes dont update to the new hardfork. Which they then cant participate in the blockchain. If it was unplanned you also run the risk of rejection
  1. A softfork is a contraction of the rules making previously valid blocks invalid. A hardfork is a expansion of the rules making previously invalid blocks valid.

  2. When some network participants want to expand the rule set (such as to allow bigger block sizes).

  3. It will split the community and the hash rate.

  1. A soft fork makes previously valid blocks invalid (an expansion of the rule set) while a hard fork makes previously invalid blocks valid (a contraction of the rule set).

  2. To expand the consensus rule set or make a change in protocol rules.

  3. Hash power is less and that could lead to security being compromised. Also would lead to a split in the community.

1 A softfork makes the previous valid blocks, invalid. A hardfork make the previous invalid blocks, valid.
2 Generally to add new functionality
3 The split of the chain loosing hashpower, and that implies less security

1 Softfork makes invalid blocks valid and hardfork makes valid block invalid.
2 a change in concensus.
3 Security issues

  1. A soft fork does not always result in a fork with two blockchains. A softfork makes previously valid blocks invalid and if adopted by at least 51% of the network the non-updated miners’ blockchain will be discarded because it has less PoW. A hard fork makes previously invalid blocks valid and always results in a fork with two blockchains unless there is exactly 100% adoption by all miners.
  2. A reason to do a hardfork is to increase the block size to increase TPS, or to introduce major changes in vision of development of the coin
  3. A hardfork splits the community into two projects, two coins, reduces hashpower and therefore security by splitting the miners
  1. Softfork update makes previously valid blocks invalid and hardfork update makes previously invalid blocks valid.
  2. Change of rules
  3. Hash power split reduces security, disagreement between community
  1. What is the difference between a softfork and a hardfork?
    A soft fork is an update that makes previously valid blocks valid.
    A hard fork is an update that makes previously valid blocks unvalid.

  2. What are some of the reasons why you would do a hardfork?
    By being an extension of the rule set, if not accepted it will cause a split and some nodes will continue to mine old blocks. This would create a new currency.
    Hard fork update is also a democratic and clear update, although it separates the chain and the community.

  3. What are some of the risks with performing a hardfork?
    By splitting the community and the chain, the hash power is also broke. This decreases security on the network.

  1. A hard fork is an update which expands the rules of concensus, a soft for contracts the rules.
  2. F.e. if the community wants to speed up the network by expanding the size of the blocks,innovations which will make the network better in a way that is accepted by a majority of the miners.
  3. It splits a community and the chain plus reduces the hash power which brings a security risk.

Homework on Soft and Hard Forks - Questions

  1. What is the difference between a softfork and a hardfork ?
  • hardfork - previous invalid block is valid - expansion
  • softfork - previous valid block is invalid - contraction
  1. What are some of the reasons why you would do
    a hardfork?
  • the separation is clear and democratic. To create bitcoin cash, sv, gold etc.
  1. What are some of the risks with performing a hardfork?
  • the hash power will be split which can reduce security.
  1. A softfork reduces the ruleset by making previous valid blocks invalid. On the other hand a hardfork expands the ruleset by making previous invalid blocks valid

  2. A hardfork can be a clear upgrade to the system, adding some new functionality for example

  3. Some risks with a hardfork are a chain split if miners do not agree with the upgrade, and therefore causing a reduction in the security of the network, for example if the miners split 50/50, each new chain will be 50% less secured than before

1-What is the difference between a soft fork and a hard fork?
The hard fork causes an invalid block to become a valid block, but this divides the blockchain, instead the soft fork causes a valid block to become invalid but in this case the chain does not fork. Soft fork is preferred for blockchain programmers.

2-What are some of the reasons why you would make a hard fork?
For an important update of the chain, where you need more space for the blocks, or reduce the creation time of the blocks.

3-What are some of the risks of performing a hard fork?
The chain is divided, just as the community is divided. When the fork is divided, the hash power is divided and this makes the security lower.

1
soft = an update makes previously valid blocks invalid.
hard = an update makes previously invalid blocks valid.

2
democratic reasons
wanting a new currency
split the community

3
coin split - unknown future
future of the community split is unknown, not possible to predict

  1. A soft fork is an update to the consensus protocol where previously valid blocks now become invalid (i.e. a tightening of the parameters of certain rules for validating blocks). Whereas with a hard fork update, previously invalid blocks now become valid (i.e. a relaxing of the parameters of certain rules for validating blocks).
    With a soft fork, as long as more than 50% of the network’s total hashing power updates to the new protocol, then sooner or later all nodes (whether they updated or not) will end up confirming the same blocks as the only “true” chain. This makes it unlikely that a permanent fork will actually occur. However, a hard fork update is likely to result in a permanent fork, because for this not to happen it would require 100% of the network’s total hashing power to update to the new protocol.

  2. You may decide to carry out a hard fork if there is a fundamental disagreement within the community over a proposed change to the protocol. A hard fork would allow one group to create a new cryptocurrency, for example, that splits from the original, while all of those in disagreement would not be forced to adopt the change, and they would be able to continue to build on the same blockchain according to the original protocol, but on a separate fork to the new cryptocurrency. By solving the disagreement in this way, both parties get what they want. Overall, this could be seen as being fairer, with no majority forcing their will over a minority. A hard fork also means that node operators or miners who choose to continue with the original protocol will not end up having to accept blocks they cannot properly validate, because they have been created under rules they don’t understand; this can happen with soft forks, where it can have a negative impact on network security.
    All in all, a hard fork update is much clearer cut for both groups, implementers and non-implementers. After the update takes place, both will know which of the two chains they are now working on, and there should be no confusion or lack of understanding of the different rules each is now validating blocks by.

  3. Risks associated with a hard fork:
    - Splitting the original community could result in antagonistic behaviour, feuds, and destructive competition, which overall ends up doing more harm than good.
    - By effectively splitting the network into two smaller networks, each now has less hashing power than they did when previously combined. Less hashing power results in less network security.
    - It may generate uncertainty and confusion for users and investors. This may in turn affect market capitalisation, or cause market instability.

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A hardfork split the chain and ar not backward-compatible and a softfork doesn’t split the chain but are backward-compatible.

Fix bugs and perforance inprovements.

Replay attack, degredating trust in the coins and the hashpower have to divide over two chains.

  1. softfork makes previously valid blocks invalid and a hard fork makes previously invlid blocks valid
  2. it is clear and democratic
  3. chain and community split