In the constantly evolving world of blockchain technology, change is bound to happen. As networks grow and new requirements come forward blockchains need to adapt themselves as per these for being relevant and efficient.
Soft forks and hard forks are two different mechanisms for implementing these changes in blockchain technology. Both these blockchain mechanisms are different and use different protocols.
What are hard forks?
A hard fork is a significant change to a blockchain protocol that results in a permanent change from the previous version. This change is so substantial that it causes changes in the new version and makes it incompatible with the old one. When a hard fork occurs, the blockchain splits into two different chains – one for following the new protocol and one for working as per old rules.
Hard forks are also called “non-backward compatible” updates. It means that the nodes or the computers that perform transactions and maintain a blockchain working with the old software will no longer take part in the new network. As a result, all the participants need to upgrade to the new version to be able to use the blockchain.
Why do hard forks happen?
There are different reasons why hard fork happens:
- New features: Hard forks are implemented to add new functionality to a blockchain because it was not possible under the old ones before.
- Security vulnerability: If a major security issue is discovered, a hard fork might be necessary to patch and bring it all under control.
- Community issues: Sometimes, different factors within the blockchain community have conflicting opinions related to future developments which can lead to a split.
- Reverse transactions: In some rare cases, hard forks have been used to reverse malicious transactions or it is also used to recover stolen funds.
- Scalability: A hard fork can be used to handle more transactions on a blockchain or operate it more efficiently for a large amount of people.
What are soft forks?
A soft fork is a change in the blockchain protocol that is backwards-compatible, meaning that the nodes which were running the old version of the software will still be used as new blocks and will be valid. Soft forks introduce new rules and restrictions to the protocol to the protocol without breaking its compatibility with older versions.
In a soft fork, only a majority of the network’s mining power needs to be upgraded for the new rules to work accordingly. Nodes which does not get updated can still participate in the network although they may not be able to take advantage of new changes or features and certain types of transactions may not be possible as well.
Why do soft forks happen?
Soft forks are implemented for multiple reasons:
- These forks can be used to optimize certain aspects of the network without requiring a complete change.
- Soft forks can be used to make improvements or small changes to the blockchain’s functionality.
- Minor bugs or virus issues in the blockchain’s code can be addressed through soft forks.
- Some soft forks aim to improve privacy or transactions.
- Soft forks can introduce new ways of doing transactions without the need for old ones.
Difference between hard and soft forks
Take a look at the table below to know the difference between hard and soft forks:
| Aspect | Hard fork | Soft fork |
|---|---|---|
| Compatibility | Not backward-compatible | Backwards-compatible |
| Node recognition | Old nodes can not recognize new blocks | Old nodes can recognize of mining power to upgrade |
| Network Consensus | Requires all nodes to upgrade | Requires only the majority of mining power to upgrade |
| Chain result | Often results in two separate chains | Typically maintains a single-chain |
| Risk level | Generally higher risk | Usually lower risk |
| Scope of changes | Can implement radical changes | Limited to changes that do not violate existing rules |
| User Impact | Users often need to take action like upgrades | Requires little to no action from regular users |
| Network split | This can lead to a permanent split in the network | Rarely results in a network split |
| Implementation difficulty | More compatible with the implement | Generally easy to implement |
| Adoption rate | Requires full adoption for success | Can succeed with partial adoption |
| Community Impact | It can be divisive and lead to community splits | Generally less controversial |
Conclusion
Both hard and soft forks play important roles in evolving and developing blockchain technology. The adoption of hard and soft forks depends on the nature of the proposed changes and risks as well. As blockchain technology evolves with time understanding these updates will become more easy and important for investors and developers.
