Homework on Soft and Hard Forks - Questions

1.Hard fork is a expansion of the rule set and tend to create a new blockchain
Soft fork is a contraction of the rule set and tend to resolve back to the original blockchain

2.Hard fork are a way to create a new project using existing workable blockchain, not staring from scratch
Very clear project goals

3.Risk with hard fork, split hash and compromise security, split community and waste time on politics in crypto

  1. What is the difference between a softfork and a hardfork?
    A soft fork will make previously valid blocks invalid and a hard fork will make previously invalid blocks valid.

  2. What are some of the reasons why you would do a hardfork?
    If you wanted to change the consensus model.

  3. What are some of the risks with performing a hardfork?
    You can split the community
    You reduce the hash power available to both forks and thus reduce security

  1. A soft fork doesn’t break the blockchain while a hard fork does. SF also work within the set of rules of the original protocol.

  2. If you wanted to create a new currency, and to open the rules for the nodes.

  3. Hash rate reduced so security decreases.

  1. Hard fork - previous invalid forks are now valid = Expansion of rules
    Soft fork - previous valid blocks are now invalid = Restriction of rules

  2. If you want an expansion of the rules. More democratic and easier to understand where you stand.

  3. decrease in hash power, and splits the community.

Homework on Soft and Hard Forks - Questions

  1. What is the difference between a softfork and a hardfork? Hardfork makes previously invalid blocks valid. Softforks makes previously valid blocks invalid.
  2. What are some of the reasons why you would do a hardfork? A change to consensus rules.
  3. What are some of the risks with performing a hardfork? Risks with performing hardforks: security issues with hash power being divided, along with the community and currency.
  1. A soft fork results from a contraction of the rules where eventually everyone ends up using the new rules. A hard fork results from an expansion of the rules where the chain splits into two distinct blockchains.
  2. To change the rules, or make improvements that not everyone agrees with.
  3. When the chain splits, there are fewer miners on each chain, making the, now 2, networks less secure. It also breaks apart the community and results in a new currency.

1. What is the difference between a softfork and a hardfork?
A hardfork makes previously invalid blocks valid. A softfork makes previously valid blocks invalid.

2. What are some of the reasons why you would do a hardfork?
There is no confusion regarding the rules and it’s more democratic.

3. What are some of the risks with performing a hardfork?
The community splits, there will be two currencies and the networks will be less secure because of the division of hash power.

  1. softfork doesn’t fork off nodes because the changes being proposed do not invalidate previous blocks. a hard fork spits the network.

  2. to alter the consensus in a way that makes the existing blocks invalid.

  3. splitting the network, miners have to use incompatible consensus and all resources have to choose one chain or the other.

  • A soft fork update makes blocks that previously were valid invalid. A contraction of the rule set, where the new rules still fit within the old rules, is a soft fork update.
  • A hard fork update expands the rule set. Blocks that were previously invalid, now would be valid. For example, the new rules allow for bigger blocks.
  1. The main reason to implement a hard fork update is to expand the rules, because the community agrees that the old rules have become inefficient. If the community doesn’t agree, the goal of a hard fork could creating a new currency. This method is more democratic, because only those who agree with the update have to “join” the blockchain with the new rules. Also, there will be no confusion for nodes, that didn’t update, whether a block is mined with the new or the old rules.

  2. With a hard fork, the network must upgrade in order to be able to still mine blocks. If a minority or a majority does not agree with the update, the blockchain will be hard forked into two different chains that can’t talk to each other anymore. This also splits the hash power of the network, making each of the networks less secure.

1.soft fork makes the size of the block smaller making previously valid blocks invalid and hard forks make the block size bigger making previously invalid blocks valid
2.making a clear update or change to the consensus
3. a hard fork will split the community making it less secure

  1. In a hard fork, previously invalid blocks will be made valid. whereas in a soft fork, previously valid blocks will be made invalid.

  2. Reasons for hardfork include community split visions for the future of network, major uogrades that is totally different from original networks etc

3)Risks - Split chains
Split community
and reduced hashing power because of splitting into more networks.

[quote=“ivan, post:1, topic:8446”]

  • What is the difference between a softfork and a hardfork?
    A hardfork requires 100% consensus to avoid a fork.
    Considers previously invalid block protocol to be now valid. New blocks would not be
    recognized by nodes not upgrading to new protocol.
    It is an expansive rule set.

A softfork requires majority consensus to avoid a fork
Considers previously valid blocks to be invalid. New blocks are recognized by
entire network nodes.
It has a contraction rule set.

  • What are some of the reasons why you would do a hardfork?
    Desire to split the community, to create a new currency and implement an expansion in block protocol necessary for a desired outcome.

  • What are some of the risks with performing a hardfork?
    It can split the community which would result in reduced hash power.
    [

/quote]

1 Em um softfork ocorre a redução no escopo das regras da blockchain e no hard fork ocorre o contrário, ocorre um aumento no escopo das regras.

2 Para modificar algum tipo de critério relativo ao consenso da blockchain, como tamanho dos blocos, tempo de intervalo entre os blocos, etc.

3 Diminuição da segurança, devido a diminuição do poder de hash dos mineradores; conflito na comunidade e uma possível turbulência no valor de mercado das moedas envolvidas.

  1. A hard fork makes previously invalid blocks valid, while a soft fork does the opposite. Basically that means that a hard fork is an expansion to the current rule set (making the new blocks in the hard fork blockchain invalid on the base blockchain), while blocks mined at a soft fork is valid on both blockchains.

  2. A reason could be that the current rule set is not scalable, and that the consensus algorithm needs to change. Another reason could be a split in the community where the community have different visions; then a hard fork would be applicable since it’d make it possible to create two different blockchains, probably serving two different purposes.

  3. The biggest risk (in case of a blockchain based on PoW consensus) seems to me to be the split of the hash power. The less hash power, the easier it’d be to manipulate with the blockchain. Also, it (could) divide(s) the community into two groups, slowing down progress etc.

1.A hard fork makes previously invalid blocks valid.
A soft fork makes previously valid blocks valid.
2.Its a clear democratic update so community can choose if they want to update or not.
3.It splits the chain, hash power, and community which then lowers security of the network.

  1. When a new version of the blockchain software contains a change at the level of the concensus :
  • a hardfork is not backward compatible --> some previous invalid blocks become valid, it’s an expension of rule set
  • a softfork is backward compatible --> some previous valid blocks become invalid, it’s a contraction of rule set.
    A softwork is be preferable - when possible - because the future chain respecting the new rules will be valid for all the nodes (even if they don’t have the new version).
  1. You would do a hardfork in order to distribute your new software version with modifications of the concensus that are not backward compatible, i.e. in order to expand the rule set. This creates a new currency, which is sometimes the objective of the hardfork.

  2. The risks with performing a hardfork are to split chain, i.e. to get 2 concurrent chains (when unintended), to have incompatibilities between miners who don’t have the same version, to split community between two groups who don’t agree, and to diminish the security in splitting the hash power.

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

HF: Makes previously invalid blocks valid.
SF: Makes previously valid block invalid.

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

When the ruleset is expanded. For example, the block size is increased.

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

Many blocks become stale.

Homework on Soft and Hard Forks - Questions

1. What is the difference between a softfork and a hardfork?
A soft fork is easier to implement, makes previously valid blocks invalid (effectively contracting the blockchain), requires a majority of the nodes in the network (>50%) to accept the change, if greater than 50% of the network nodes accept the change this results in a “no chain split” which in-turn forces nodes that did not agree to soft fork are forced to follow because the blockchain length will be driven by network nodes that accepted the soft fork because the network hash power is driven by the soft fork (new consensus rule set).

A hard fork is more difficult to manage, can lead to a fork in the chain resulting in the creation of a new currency (e.g. BTC / BCH). ALL nodes understand how to implement the change and can decide whether to follow this change so democratic. A splitting of the blockchain results in a reduction in network hash power because network node compute power transfers away from the original blockchain increasing both chains vulnerability to attack.

2. What are some of the reasons why you would do a hardfork?
To create a new currency (e.g. BTC / BCH). To expands the network by making previously invalid blocks valid, and because they are easier to understand & implement and enforce within the network.

3. What are some of the risks with performing a hardfork?
Can lead to a splitting of the blockchain because ALL network nodes can democratically choose to not accept the soft fork update (consensus rule set change). If ALL nodes do not accept the new consensus rule set the community becomes fractured leading to a fork and subsequent reduction in hash power because network compute power transfers away from the original blockchain increasing both chains (forked chain + original blockchain) vulnerable to attack.

1.) HF extends the ruleset but split in two seperate chains (new ruleset is not vaild for the old chain), SF contracts the ruleset but keeps the original chain intact and blocks with the new ruleset can be mined and are also valid according the old ruleset.
2.) eg. Impove functionallity and/or security.
3.) the hashpower is split (less security), also community is split - as in BSV - they will fight against BTC.

  1. A hard fork update is an expansion of the rule set which makes previously invalid blocks valid, and a soft fork is a contraction of the rule set which makes some valid blocks invalid.

  2. Expansion of rule set for block creation within the network.

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