What is a hard fork?
summary
A hard fork is a software upgrade that must be implemented into the blockchain. The enhancements that come with a hard fork’s new protocol are often incompatible with existing blockchain protocols, resulting in a two-part split. One follows the old protocol and the other follows the new protocol.
Forks are often initiated by cryptocurrency community members or developers who want advanced features not met by the current network protocol. Sometimes users utilize hard forks as a crowdsourcing method to build new technology projects.
What is a hard fork?
A hard fork is like a new update to the software that runs the blockchain. This is when all nodes on the blockchain must accept the upgraded software or continue using the previous version. A split occurs when the nodes of the new blockchain no longer accept the old version of the blockchain, or when people on the old version do not agree on updates.
The split creates two separate blockchains running in parallel with two different protocols. Hard forks often occur for a variety of reasons, including adding new features, strengthening certain features, fixing security issues, or improving transaction speeds.
Since both blockchain networks use different protocols, incompatibilities arise and miners must choose between the two versions. Typically, existing chain users often upgrade to the latest version to enjoy improved features.
Hard forks have always been inevitable, and we introduce the history of Bitcoin hard forks.
How does a hard fork work?
To better understand hard forks, let’s first look at blockchain technology. A blockchain is simply a distributed database with transaction records stored in blocks. Blocks also contain a set of instructions, called protocols, that dictate how the blockchain network operates.
Because blockchains are decentralized, any changes to transactions or instructions are propagated to all nodes for approval. When making significant changes to an existing blockchain, a hard fork must be created and approved by all nodes to create a new blockchain. When developing a new project, developers will choose a blockchain on which a significant number of nodes agree.
Hard forks are more common and often necessary for almost all blockchains except Bitcoin. Because Bitcoin and all cryptocurrencies are backed by blockchain technology, just like the Bitcoin blockchain, other cryptocurrency blockchains also experience hard forks. For example, if a node or developer wants to make a specific change to the blockchain, they create a fork with all the updated rules. However, all nodes must accept the hardfork implementation rules. Bitcoin Cash and Bitcoin Gold are some of Bitcoin’s hard forks.
Why do hard forks occur?
Technology advances very quickly in all other industries, especially in the cryptocurrency sector. Therefore, developers often explore the underlying code of a cryptocurrency and improve it according to evolving requirements and current industry trends.
Software upgrades lead to hard forks for a variety of reasons. For example, new features can be added to make a blockchain more competitive than other blockchains or to enhance the overall security of an existing blockchain.
However, all nodes in the blockchain network must accept the new protocol. However, in the past, changes were often not accepted by community developers in most cases. This ultimately leads to different versions of cryptocurrencies on different blockchains.
The most important event that occurred in the past was the hard fork of Ethereum. Ethereum Classic, a hard fork of the original blockchain, Ethereum, was created after experiencing security vulnerabilities that could result in financial losses. The Ethereum Foundation has implemented a new upgrade to restore victims’ funds. This event signifies the importance of hard forks.
Hard fork vs soft fork
Hard forks and soft forks have several things in common. For example, when existing software on a blockchain is updated, the old version continues to exist on the network while a new version is created. However, there are some potential differences. Let’s discuss in detail.
A soft fork may seem sufficient and may suit your goals, but it is not very efficient. Developers prefer hard forks for better performance. On the other hand, creating a hard fork with an entirely new protocol requires enormous computing power. But it’s worth it for increased security, privacy, and efficiency.
conclusion
Hard forks are important events in blockchain and cryptocurrency as development teams introduce fundamental changes and improvements or solve important problems within the blockchain network through hard forks. Despite the complexities associated with hard forks, such as separate blockchains, community fragmentation, and disruption, they play an important role in blockchain innovation. Staying informed about potential events in the cryptocurrency industry helps users explore the possibilities with greater confidence.
