What Is the Difference between a Soft Fork and a Hard Fork in Cryptocurrency Protocol Changes?
A soft fork is a backward-compatible protocol upgrade, meaning older, non-upgraded nodes will still recognize the new blocks as valid, though they cannot enforce the new rules. A hard fork is a non-backward-compatible change that requires all nodes to upgrade; if not, the network splits into two separate chains with different rules.
Hard forks are typically more disruptive.
Glossar
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 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.
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
Evolution ⎊ A soft fork represents a backward-compatible alteration to a cryptocurrency's protocol, essentially a modification that doesn't invalidate older versions.