What is Hard Fork in Blockchain?
A hard fork is a radical change to the protocol of a blockchain network that makes previously invalid blocks and transactions valid, or vice versa.
A hard fork requires all nodes or users to upgrade to the new version of the protocol software. Put simply, a hard fork is a change to the rules of a blockchain that is not compatible with the old rules, and which therefore requires all users to upgrade to the new version of the software.
Hard forks can be contentious and can lead to the creation of two separate blockchains, as happened with Bitcoin and Bitcoin Cash in August 2017. Another example of a hard fork is the Ethereum hard fork that occurred in 2016. This hard fork resulted in the creation of a new cryptocurrency, Ethereum Classic that uses a different transaction format than Ethereum. As a result, Ethereum and Ethereum Classic are now two separate networks.
When a hard fork takes place, all users of the blockchain are required to upgrade to the new software in order to remain compatible with the network. If they don’t, they will be left behind on the old chain.
Is a hard fork good for crypto?
There is no easy answer when it comes to whether or not a hard fork is good for a crypto project. It really depends on the specific circumstances of the project in question. Some hard forks can be incredibly beneficial, while others can end up being disastrous.
Generally speaking, a hard fork happens when there is a disagreement among the developers of a cryptocurrency project about how the project should move forward. This can often lead to a split in the community, with some people supporting the new fork and others remaining on the old chain.
If a hard fork is successful, it can bring a lot of new attention and investment to a project. It can also help to resolve any existing problems with the project by giving the community a fresh start. However, hard forks can also be very risky. If they are not carried out correctly, they can lead to the complete collapse of a project.
So, ultimately, whether or not a hard fork is good for a crypto project depends on a variety of factors. It is important to carefully consider all of the potential consequences before making a decision.
What is a soft fork in blockchain?
A soft fork is a change to the software protocol of a cryptocurrency that is backward-compatible with the previous version of the protocol. In other words, a soft fork is a change to the cryptocurrency that does not require all users to upgrade to the new version of the protocol. Soft forks can be used to add new features to a cryptocurrency or to reverse transactions (as in the case of a blockchain re-organization). In a proof of work system, when a majority of miners (by hash power) upgrade to the new software, the soft fork will end and the blockchain will revert to a single congruous chain.