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.