How Does a Hard Fork Differ from a Soft Fork in Terms of Network Consensus?
A hard fork is a non-backward-compatible protocol upgrade, meaning nodes that do not upgrade will see the new blocks as invalid, leading to a permanent chain split. A soft fork is backward-compatible; non-upgraded nodes still see the new blocks as valid, though they cannot enforce the new rules, maintaining a single chain.
Hard forks require near-unanimous consensus for a smooth transition.
Glossar
Hard Fork
Disruption ⎊ A hard fork represents a radical divergence in a blockchain’s protocol, creating a permanent split and typically resulting in a new cryptocurrency.
Fork
Chain ⎊ A fork, within cryptocurrency contexts, represents a divergence in the blockchain's history, resulting from a change in the underlying protocol rules.
Hard Forks
Disruption ⎊ Hard forks represent fundamental alterations to a blockchain’s protocol, necessitating all nodes to upgrade to maintain consensus; this divergence can introduce volatility into cryptocurrency markets, impacting derivative pricing models reliant on stable underlying asset behavior.
Soft Fork
Upgrade ⎊ This refers to a backward-compatible change to the protocol’s software, where non-upgraded nodes will still recognize blocks produced by upgraded nodes as valid, allowing for gradual adoption of new features or bug fixes.