# What Is a 'Soft Fork' versus a 'Hard Fork' in Blockchain Upgrades? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## What Is a ‘Soft Fork’ versus a ‘Hard Fork’ in Blockchain Upgrades?

A soft fork is a backward-compatible protocol upgrade, meaning old, non-upgraded nodes will still recognize new blocks as valid, even if they don't understand the new rules. A hard fork is a non-backward-compatible upgrade that requires all nodes to update; if not, the network permanently splits into two separate chains with different rules.

Hard forks are often used for major changes.

- [What Is the Difference between a Soft Fork and a Hard Fork in Relation to Block Size Changes?](https://learn.greeks.live/path/what-is-the-difference-between-a-soft-fork-and-a-hard-fork-in-relation-to-block-size-changes/)

- [What Is a ‘Hard Fork’ versus a ‘Soft Fork’ in Blockchain Technology?](https://learn.greeks.live/path/what-is-a-hard-fork-versus-a-soft-fork-in-blockchain-technology/)

- [Differentiate between a ‘Soft Fork’ and a ‘Hard Fork’ in Cryptocurrency](https://learn.greeks.live/path/differentiate-between-a-soft-fork-and-a-hard-fork-in-cryptocurrency/)

- [How Does a Hard Fork or Soft Fork Change the Block Size Limit?](https://learn.greeks.live/path/how-does-a-hard-fork-or-soft-fork-change-the-block-size-limit/)

- [How Does a Hard Fork Differ from a Soft Fork in Terms of Network Consensus?](https://learn.greeks.live/path/how-does-a-hard-fork-differ-from-a-soft-fork-in-terms-of-network-consensus/)

- [What Are the Key Differences between a ‘Hard Fork’ and a ‘Soft Fork’ in Blockchain Development?](https://learn.greeks.live/path/what-are-the-key-differences-between-a-hard-fork-and-a-soft-fork-in-blockchain-development/)

- [What Is the Difference between a Hard Fork and a Soft Fork in Cryptocurrency?](https://learn.greeks.live/path/what-is-the-difference-between-a-hard-fork-and-a-soft-fork-in-cryptocurrency/)

- [Explain the Concept of a ‘Fork’ in a Blockchain Network](https://learn.greeks.live/path/explain-the-concept-of-a-fork-in-a-blockchain-network/)

## Glossar

### [Hard Forks](https://learn.greeks.live/area/hard-forks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/soft-fork/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

### [Hard Fork](https://learn.greeks.live/area/hard-fork/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/fork/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Chain ⎊ A fork, within cryptocurrency contexts, represents a divergence in the blockchain's history, resulting from a change in the underlying protocol rules.

## Discover More

### [How Does a DAO Handle Protocol Upgrades That Require Changes to the Core Smart Contracts?](https://learn.greeks.live/path/how-does-a-dao-handle-protocol-upgrades-that-require-changes-to-the-core-smart-contracts/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a DAO Handle Protocol Upgrades That Require Changes to the Core Smart Contracts?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Protocol-Layer-Zero-Mechanism-Execution-Flow.webp)

Proposal → Vote → Execution. 100% community approval. Upgrade ← smart contract call.

### [What Is the Primary Security Benefit of PoS over PoW regarding Network Upgrades?](https://learn.greeks.live/path/what-is-the-primary-security-benefit-of-pos-over-pow-regarding-network-upgrades/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Security Benefit of PoS over PoW regarding Network Upgrades?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Machined-Actuator-Mechanism-Above-Cryptocurrency-Ledger-Circuitry-Platform.webp)

PoS enables smoother upgrades and allows the network to financially punish malicious forks, preventing persistent chain splits.

### [What Are Some Historical Examples of Network Upgrades That Led to Bearish Sentiment?](https://learn.greeks.live/path/what-are-some-historical-examples-of-network-upgrades-that-led-to-bearish-sentiment/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are Some Historical Examples of Network Upgrades That Led to Bearish Sentiment?](https://learn.greeks.live/wp-content/uploads/2025/10/Hard-Disk-Platter-Data-Access-Spindle-Metaphor-for-Decentralized-Finance-Derivative-Execution-Speed.webp)

The Bitcoin Cash hard fork and the Ethereum DAO hack are examples of upgrades that created bearish sentiment.

### [How Does a 'Fork' Occur in a Blockchain Network?](https://learn.greeks.live/path/how-does-a-fork-occur-in-a-blockchain-network/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a 'Fork' Occur in a Blockchain Network?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-State-Marble-Visualization-of-Blockchain-Settlement-Finality-Mechanism-Under-Low-Latency-Market-Conditions.webp)

A split in the blockchain's path due to a change in consensus rules; Soft Forks are compatible, Hard Forks create a new chain.

### [What Is the Difference between a Soft Fork and a Hard Fork in the Context of Changing a Mining Algorithm?](https://learn.greeks.live/path/what-is-the-difference-between-a-soft-fork-and-a-hard-fork-in-the-context-of-changing-a-mining-algorithm/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between a Soft Fork and a Hard Fork in the Context of Changing a Mining Algorithm?](https://learn.greeks.live/wp-content/uploads/2025/10/Aerodynamic-Profile-of-a-High-Frequency-Algorithmic-Trading-System-Nanoprobe-Apex.webp)

A soft fork is backward-compatible; a hard fork is not and permanently splits the chain, as required for an algorithm change.

### [What Is the Primary Difference in How Slippage Is Calculated on an AMM versus a CLOB?](https://learn.greeks.live/path/what-is-the-primary-difference-in-how-slippage-is-calculated-on-an-amm-versus-a-clob/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Difference in How Slippage Is Calculated on an AMM versus a CLOB?](https://learn.greeks.live/wp-content/uploads/2025/10/Analyzing-Synthetic-Saturnian-Ring-Structures-Modeling-Decentralized-Autonomous-Organization-Governance-Protocols.webp)

CLOB slippage is based on discrete order book levels; AMM slippage is based on a continuous function of pool ratios.

### [What Is the Impact of a Net Debit versus a Net Credit on the Collar's Breakeven Point?](https://learn.greeks.live/path/what-is-the-impact-of-a-net-debit-versus-a-net-credit-on-the-collars-breakeven-point/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Impact of a Net Debit versus a Net Credit on the Collar's Breakeven Point?](https://learn.greeks.live/wp-content/uploads/2025/10/Illuminated-Glass-Orb-Mechanism-Indicating-Stochastic-Volatility-Surface-Contango-Futures-Hedging.webp)

A net debit raises the breakeven point, while a net credit lowers it, relative to the asset's purchase price.

### [How Can a Large, Unexpected Network Event (Like a Hard Fork) Impact the Crypto Basis?](https://learn.greeks.live/path/how-can-a-large-unexpected-network-event-like-a-hard-fork-impact-the-crypto-basis/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a Large, Unexpected Network Event (Like a Hard Fork) Impact the Crypto Basis?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptualization-of-Decentralized-Autonomous-Organization-Governance-Token-Ring-Structures-Intersecting-with-Exotic-Options-Payoff-Diagrams.webp)

It creates extreme spot market uncertainty and volatility, causing the futures price to decouple from the true underlying value, impairing the basis.

### [Define and Compare Gross Settlement versus Net Settlement in the Context of Derivatives](https://learn.greeks.live/path/define-and-compare-gross-settlement-versus-net-settlement-in-the-context-of-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define and Compare Gross Settlement versus Net Settlement in the Context of Derivatives](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Cryptocurrency-Option-Settlement-Stack-Visualization-of-Dynamic-Strike-Price-Convergence-Mechanisms.webp)

Gross settles every trade individually; Net aggregates obligations, transferring only the final balance, which is more capital efficient.

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**Original URL:** https://learn.greeks.live/learn/what-is-a-soft-fork-versus-a-hard-fork-in-blockchain-upgrades/
