All software requires the execution of continuous updates to increase performance or to solve various problems. Within the Crypto world, these updates are known as Fork.
Cryptocurrencies represent a totally decentralized asset, interconnected by millions of nodes in a huge network called P2P or peer to peer.
Each node must follow a protocol or set of rules to work together and coherently on the blockchain. To modify the protocol, there are two ways to do it: Soft Fork and Hard Fork. Learn to differentiate them quickly.
Know the term Fork within the Crypto world
The word “fork” translated into Spanish means “Fork”. Like a split path, it involves creating a new project from an old one.
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In the blockchain or chain of blocks, forks refer to a change in the codified rules of consensus. These allow nodes to validate transactions, verifying various aspects, such as the size of a block, etc.
Click To Tweet: Forks are changes or updates in the protocol or code of a Cryptocurrency, to improve or protect against attacks.
The changes are for specific purposes, from updates to protecting the network from attacks or fraud.
Importance of recognizing when a Fork occurs in Blockchain
Forks in the Cryptographic world are very common because the platforms work with an Open Source. This means that anyone with advanced knowledge of blockchain can modify the code.
Thus, Forks would arise, presenting even other more efficient Cryptocurrencies, with more advantageous characteristics. Such is the case of Bitcoin Cash, a Bitcoin fork that turned out to be a very successful version.
This offers lower commissions, reduced transfer time and the possibility of managing more transactions per second. Bitcoin has 1 mb blocks and can support 3.5 transactions per second.
Meanwhile in Bitcoin Cash, the blocks are 32 mb with 24 transactions per second. There is a clear improvement in agility and number of transactions.
Knowing about the existence of these forks would expand your business projection, taking advantage of the benefits of the appropriate Cryptocurrencies.
Why does the Hard Fork in Blockchain exist?
The reasons why hard forks exist are due to “accidents” due to the correction of errors in the code. They may also have been intentionally designed to create a new protocol proposal.
The hard fork is capable of originating two kinds of block chains, the original and the new chain. This would result in two Cryptocurrencies and two different networks.
Discover the types of Soft Fork
- MASF: These acronyms in English mean “Miner Active Soft Fork”
The vast majority of miners on the Blockchain upgrade to the new version to enforce the protocol or new rules. They can introduce updates without this affecting the operation.
- UASF: “User Activated Soft Fork” or soft fork activated by the user. It includes the coordination to comply with the rules, on the part of all the nodes or users on the network, without the support of the miners.
Main differences between Soft Fork and Hard Fork
Discover below each of the types of forks and their most notable differences.
The Soft Fork
The Soft Fork is a very minor software update.
Click To Tweet: According to the way of forking a Cryptocurrency, they are classified into two types: soft fork and hard fork.
It is a change in the Cryptocurrency protocol, where the updated nodes reject previously valid transactions. Learn about its features below.
- Updates maintain backwards compatibility
- Participants who skip the update can continue to validate incoming transactions
- The functions of the participants are reduced and not canceled
- Gradual update mechanism
The Hard Fork
The Hard Fork or strong bifurcation refers to a major update of the initial rules or protocol.
This forces all users to migrate to the new software if they want to use the same blockchain. Compare the following traits with the soft fork.
- Updates are not backward compatible
- Participants who do not upgrade will not be able to participate in new transactions
- The functions of the participants are canceled
- Immediate update mechanism
Conclusions:
In soft forks and hard forks, users play a key role as participants in the network upgrade. As more people join the Crypto ecosystem, forks will increase the development of the entire Crypto industry.
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