What Are the Key Differences between a ‘Hard Fork’ and a ‘Soft Fork’ in Blockchain Development?
A hard fork is a radical, non-backward-compatible change to a blockchain's protocol, requiring all nodes to upgrade to the new software. If a portion of the community refuses to upgrade, the chain permanently splits into two separate, independent blockchains.
A soft fork is a backward-compatible change, meaning upgraded nodes can still interact with non-upgraded nodes. Soft forks do not result in a permanent chain split, as the new rules are stricter and are generally accepted by the network.
Glossar
Backward Compatibility
Continuity ⎊ The concept of backward compatibility, within the context of cryptocurrency derivatives, options trading, and financial derivatives, fundamentally concerns the preservation of functionality across evolving systems.
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.
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.
Soft Forks
Adjustment ⎊ Soft forks represent a class of backward-compatible protocol adjustments that tighten the rules for valid blocks, meaning that blocks validated by the new rules are still considered valid by nodes running the old software.