Source - https://medium.com/coinscapture/know-everything-about-cryptocurrency-fork-2ff2b444d213
A fork is most commonly considered as just cutlery. But in reality, it has a different meaning too. In the world of cryptocurrency, a fork is a technical term explaining the computer software phenomenon, occurring due to changes in consensus (general agreement) algorithm or other software updates resulting in a divergence in the blockchain. Ahhh!!! That’s too technical right, let’s make it simple, forks means the splitting of blockchain into two branches.
What are the different types of Forks?
A fork can be classified into two different types depending on the nature of change, namely accidental forks, and intentional forks. An accidental fork is formed when two or more miners find a block nearly at the same time resulting in two split chains. This occurs when some nodes in the decentralized system register different information other than the blockchain protocol. Since this split causes forks, it has to be identified and resolved quickly in order to avoid destabilizing influence on the network. It is done by the following way when the subsequent block(s) are added onto the chains, one chain becomes longer than the other chain and automatically the network abandons the shorter chain. An intentional fork is formed when the set rules of the blockchain are modified. Based on this, they are further classified as Hard forks and Soft forks.
What is a hard fork?
Hard forks are considered very troublesome because they are software updates which make the older versions completely incompatible (like your android/iOS update) and makes mandatory for all the nodes and miners on the network to upgrade themselves to the latest version in order to continue participation and validation of new transactions. If they do not upgrade they would no longer be able to participate and validate the new transaction and will be separated permanently from the network. This event creates a fork wherein one chain follows the new blockchain while other the chain follows the older one. Both the chains can exist concurrently until the miners are supporting the minority offshoot. Hard forks carry a major risk of double spending.
Consider the following example for deeper understanding. Imagine you are making a team presentation with your own mindset and sharing all the information with your colleague and the presentation was further proceeded by the colleague with his own mindset which eventually divided the original presentation in two. Similarly, in the blockchain, a hard fork is created.
However, the hard fork is further classified as planned and contentious forks. A planned hard fork is a software update that has already been stated at the start of the project in order to improve blockchain’s features and capabilities. It makes no sense for the entire community to follow the older version because they lack incentives. For e.g. Ethereum’s Byzantium and Monero. A contentious fork is created due to disagreements within the network resulting in a new chain because of a major change in the code. For e.g. Bitcoin Cash and Ethereum classic
What is a soft fork?
Soft forks are considered as less troublesome because they are a minor software update, keeping it compatible with the older versions. That means it is not necessary for all the participants in the network to upgrade themselves with the latest version to continue validation and verifying the transactions. Only the participant’s functionality getting affected if not upgraded. A soft fork is only possible when the majority of the users choose to upgrade for enforcing new rules on the blockchain. For more understanding, let’s explore the above presentation example once again. With respect to the previous example, the colleague will continue with your presentation in such a way that the original presentation is not divided into two and does not change its meaning. It’s just a minor change. For e.g. Block size limit and BIP 66
Hence, the fork is not just cutlery used for slicing the food, however, it all together have a different meaning which has a major impact on the blockchain.
A fork is most commonly considered as just cutlery. But in reality, it has a different meaning too. In the world of cryptocurrency, a fork is a technical term explaining the computer software phenomenon, occurring due to changes in consensus (general agreement) algorithm or other software updates resulting in a divergence in the blockchain. Ahhh!!! That’s too technical right, let’s make it simple, forks means the splitting of blockchain into two branches.
What are the different types of Forks?
A fork can be classified into two different types depending on the nature of change, namely accidental forks, and intentional forks. An accidental fork is formed when two or more miners find a block nearly at the same time resulting in two split chains. This occurs when some nodes in the decentralized system register different information other than the blockchain protocol. Since this split causes forks, it has to be identified and resolved quickly in order to avoid destabilizing influence on the network. It is done by the following way when the subsequent block(s) are added onto the chains, one chain becomes longer than the other chain and automatically the network abandons the shorter chain. An intentional fork is formed when the set rules of the blockchain are modified. Based on this, they are further classified as Hard forks and Soft forks.
What is a hard fork?
Hard forks are considered very troublesome because they are software updates which make the older versions completely incompatible (like your android/iOS update) and makes mandatory for all the nodes and miners on the network to upgrade themselves to the latest version in order to continue participation and validation of new transactions. If they do not upgrade they would no longer be able to participate and validate the new transaction and will be separated permanently from the network. This event creates a fork wherein one chain follows the new blockchain while other the chain follows the older one. Both the chains can exist concurrently until the miners are supporting the minority offshoot. Hard forks carry a major risk of double spending.
Consider the following example for deeper understanding. Imagine you are making a team presentation with your own mindset and sharing all the information with your colleague and the presentation was further proceeded by the colleague with his own mindset which eventually divided the original presentation in two. Similarly, in the blockchain, a hard fork is created.
However, the hard fork is further classified as planned and contentious forks. A planned hard fork is a software update that has already been stated at the start of the project in order to improve blockchain’s features and capabilities. It makes no sense for the entire community to follow the older version because they lack incentives. For e.g. Ethereum’s Byzantium and Monero. A contentious fork is created due to disagreements within the network resulting in a new chain because of a major change in the code. For e.g. Bitcoin Cash and Ethereum classic
What is a soft fork?
Soft forks are considered as less troublesome because they are a minor software update, keeping it compatible with the older versions. That means it is not necessary for all the participants in the network to upgrade themselves with the latest version to continue validation and verifying the transactions. Only the participant’s functionality getting affected if not upgraded. A soft fork is only possible when the majority of the users choose to upgrade for enforcing new rules on the blockchain. For more understanding, let’s explore the above presentation example once again. With respect to the previous example, the colleague will continue with your presentation in such a way that the original presentation is not divided into two and does not change its meaning. It’s just a minor change. For e.g. Block size limit and BIP 66
Hence, the fork is not just cutlery used for slicing the food, however, it all together have a different meaning which has a major impact on the blockchain.
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