One of the phenomena observed in the field of cryptocurrencies is the phenomenon of fork. This phenomenon is divided into two categories: hard fork and soft fork. They are used in cryptocurrencies such as bitcoin, Ethereum and other digital currencies. What is Hard Fork? We will answer and introduce both types. The reason why they occurs is because some blockchain functions have a currency advantages or disadvantage that will require a major update. The core users of each blockchain are able to make these changes in the form of a new software release.
An example of Hard Fork and Soft Fork
To find out enough about what Hard Fork is, let’s take an example of the two types. Simply, a hard fork occurs when a digital currency is split into two digital currencies. This happens when the existing encryption code is changed in both the new and the old versions. A hard fork creates two incompatible versions of the blockchain and Coin, while a soft fork creates two compatible versions of the software and Coin. So both types create two different versions of the software, which are two different versions of the Blockchain or two different versions of the coin.
For a better understanding of what a hard fork is, let’s take a look at some of the available ones. SegWit is an example of soft fork of bitcoin created to create two compatible versions of software and both have a single bitcoin asset. Both SegWit and non-SegWit software use the same bitcoin, and the SegWit Blockchain follows non-SegWit rules. So non-SegWit software also recognizes transactions with SegWit software. In fact, SegWit is backwards compatible with blockchain.
Bitcoin Cash is a great example to give an example of what a hard fork is. This digital currency is a bitcoin hard Fork built to create two different coins. Bitcoin Cash and Bitcoin are two completely different cryptocurrencies after the activated block. In fact, from one chain point to the next, the blockchain is converted into two network chains. You cannot send Bitcoin Cash to Bitcoin Blockchain or contrariwise. Because their blockchain are not compatible. It is important to note, however, that not every hard fork is meant to create a new coin.
The Byzantium Hard fork is an example of this type that was created to create two incompatible chains, but there is only one coin that has value. Byzantium was a mandatory upgrade to Ethereum software. Byzantium was not supposed to use the old Ethereum software. After Byzantium, there was still only one Ethereum with two blockchains. Therefore, it is important for Ethereum users to update their running nodes (software versions) to new software to ensure access to the new chain.
Expected results from forks
To know what the consequences of a hard fork is, we have to say what we expect from a it. The expected results of this phenomenon of both soft and hard types are generally summarized in two cases. In the first case, both chains of the network are independent of each other, with approximately equal number of users or values. SegWit is also of this category. Since year 2017, many users have been running non-SegWit nodes. SegWit and Byzantium do not reach two completely different coins, but only differ in their software acceptance.
Second type is that one network chain dominates the other, and as a result the blockchain is no longer accepted by the community or its coin value is lower. In fact, both blockchains have been adopted, but one is not interest to users. One of the two chains becomes the dominant one in terms of asset value, but the other one maintains a reasonable level of community support and value; Bitcoin Cash and Ethereum are good examples of this (both are blockchains but one popular Is higher and generally holds higher value). Any of the above can happen, but the second option is more common and therefore more than expected. The following is a brief overview of the Hard Fork Questions.
What is Hard Fork in this article? Has been answered. In addition, it is fully explained and its differences. In fact, in one Soft Fork, two versions of the software are compatible but in one Hard Fork, two versions of the software are incompatible. All the changes to this phenomenon are software-based, which means that each Fork’s specifications are technically distinct from the source code.