What Is the Difference between a Soft Fork and a Hard Fork in Relation to Block Size Changes?
A soft fork is a backward-compatible protocol upgrade where non-upgraded nodes will still see new blocks as valid, though they may not understand the new rules. It can only enforce stricter rules, like SegWit.
A hard fork is a non-backward-compatible upgrade that requires all nodes to update to the new software. A hard fork is required to increase the block size limit, as old nodes would reject the larger blocks.
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.
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.
Protocol Upgrade
Implementation ⎊ Protocol upgrades represent a fundamental shift in the operational parameters of a blockchain network, necessitating coordinated changes to the underlying software governing consensus mechanisms and state transitions.
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.
Block Size
Capacity ⎊ The block size parameter fundamentally dictates the maximum data volume a single block can hold on a blockchain network.
Non-Backward-Compatible Upgrade
Disruption ⎊ A non-backward-compatible upgrade within cryptocurrency, options trading, and financial derivatives signifies a protocol change that renders previously valid transactions or smart contracts invalid, necessitating adoption of the new ruleset for continued participation.