What Is the Difference between a Hard Fork and a Soft Fork in Cryptocurrency?
A hard fork is a radical software upgrade that is not backward-compatible, meaning all users must upgrade to the new version to continue participating in the network. This creates a permanent split in the blockchain, resulting in two separate cryptocurrencies.
A soft fork, in contrast, is a backward-compatible upgrade, allowing both upgraded and non-upgraded nodes to interact on the same blockchain. Soft forks tighten the rules without creating a new coin, acting more like a software update than a fundamental split.
Glossar
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.
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.
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.
Fork
Chain ⎊ A fork, within cryptocurrency contexts, represents a divergence in the blockchain's history, resulting from a change in the underlying protocol rules.