Hard Fork: Explained

Blockchain Forks Explained

Blockchain forks are not limited to any one cryptocurrency platform, like Bitcoin. This is due to the fact that the core ideas behind cryptocurrencies and blockchains are the same on all platforms.

Blocks in a blockchain can be compared to cryptographic keys that help move data around. The miners within a blockchain network establish and enforce the rules governing this data flow.

The miners must agree on any modifications to these guidelines before implementation. They have to decide what makes a legitimate block in the blockchain as a group.

The procedure known as “forking” is used when it becomes necessary to change these regulations.

It’s more like coming across a fork in the road, which indicates a modification or abandonment in its protocol. Developers then modify the program to conform to the new regulations.

As for Bitcoin, we know several things come to a few miner’s minds when they think it should be approved. The most common one is its slower processing time. However, not everyone thinks the same.

Let’s understand what would happen in such a situation: The community can vote to execute a fork on the Bitcoin blockchain.

Now, one blockchain would be there with the conventional block size. However, the new chain would be there with improved block processing, that is, with a larger block size.

A number of digital currencies that are named after Bitcoin have emerged as a result of this forking mechanism, including Bitcoin Cash and Bitcoin Gold.

What is a Hard Fork?

In blockchain technology, a hard fork is a permanent split from an earlier version of the blockchain that occurs when nodes running on the most recent version fail to recognize the older versions.

By adding new rules to the blockchain’s code, this split is started, thus splitting the network into two directions.

While one of these routes stays on the original path, the other follows the most recent updates to the blockchain.

Users of the older blockchain typically realize very quickly that their version needs to be updated or more efficient and quickly switch to the updated version.

How Does Hard Fork Fork?

A hard fork introduces a fundamentally incompatible change to a blockchain network’s protocol.

This implies that the new version cannot validate blocks made by the old blockchain version and vice versa.

The original chain and the new forked chain are the two distinct chains that result from splitting the blockchain.

The community modifies the underlying code so much during hard forks that it is incompatible with earlier versions. Updates, enhancements, and new features are some examples of these modifications.

All nodes receive a new digital ledger when changes are done and new blocks are added.

The digital ledger stores these modifications, making it more difficult to manipulate the blockchain, which is often irreversible.

The blockchain network split in two due to hard forks. While one cryptocurrency abides by the new regulations, the other adheres to the outdated standards.

The decision is left up to the user’s judgement. They have the option to adopt the latest cryptocurrency or stick with their old one.

However, all of the computer nodes in the network must update their software with the new modifications for the latest cryptocurrency created to be accepted on the blockchain.

Developers frequently use hard forks to create new coins or initiatives. They can also fix conflicts, remove bugs or corrupt files, improve security, or provide improved services.

Advantages of Hard Fork

Here are the advantages of a hard fork:

• Robust Security

Cryptocurrencies are frequently at risk due to hackers’ eyes on them. They can flee with funds by manipulating or corrupting the blockchain network.

However, with a hard fork, the security of the entire blockchain network is tightened and improved.

This makes it difficult for hackers to conduct hacking attacks or compromise the user’s security.

• Improved Block Rewards

Block rewards are given to miners who create legitimate blocks that are added to the blockchain.

The price of cryptocurrencies is also positively impacted by changes made through hard forks.

Additionally, investors receive fresh tokens of the new fork in the event of a split brought on by a hard fork.

• Flexibility

If Community members believe their visions are outside the line, they can also give up the blockchain.

Furthermore, the hard fork will not bring about changes that restrict community members’ freedom to enter or exit.

Members can ask for a soft fork or even a hard fork to implement new changes if a hard fork doesn’t satisfy them.

If specific individuals are okay with the previous blocks, they can also utilize an earlier version of the blockchain.

Disadvantages of Hard Fork

Here are the disadvantages of hard fork:

• Fuels Confusion

When new changes are constantly made, investors or users may be confused about the new rules.

Seasonal changes can still be considered; however, constant changes can create difficulty in the minds of investors.

It can lead them to need help understanding the new features and miss out on better opportunities.

• High Exploitation

Hackers are able to detect the blockchain’s vulnerability and attempt to exploit it using a replay attack.

This occurs when cybercriminals deceive consumers by intercepting a secure transmission.

The blockchain is vulnerable to many modifications, which hackers will eventually notice.

To take advantage of this vulnerability, they can hack the blockchain in the middle of a change and steal money.

• Security Issue

Old forks may still have security issues even after hard forks are created, leaving users needing clarification about which version to use if they aren’t aware of the change in advance.

Hard Fork Vs. Soft Fork

A hard fork and a soft fork differ in several ways. A hard fork creates a completely different blockchain network, whereas a soft fork is just an upgraded version of the existing blockchain.

Let’s look at each fork differently to understand how they are different from one another: