Crypto Glossary

Posted on September 13, 2021 in
Glossary

Hard Fork

A hard fork occurs when blockchain’s protocols are dramatically changed. Let’s say there is just one cryptocurrency. With a hard fork, the coin divides in two, and from then on, all the blocks and transactions that were previously invalid become legitimate. Because of this, all developers must update their software to the current version.

What is hard fork?

Hard fork is a phenomenon in the world of bitcoin and cryptocurrency when a change creates certain divergences in the blockchain as a consequence of miner or user activity or when rules are changed that causes the blockchain to hard fork. In the realm of cryptocurrencies, there are two types of forks: hard forks and soft forks. A hard fork, in contrast to a soft fork, does not resolve itself automatically based on user trends.

A hard fork is a rule change that has far-reaching ramifications for the whole protocol of the blockchain network, and it is referred to as such. When compared to the old rules, valid blocks produced using the new rules may be viewed as invalid, and invalid blocks produced using the new rules may be viewed as valid, which means that all nodes intended to work in accordance with the new rules must upgrade their software to reflect the new rules.

Why are there hard forks?

Hard forks have the potential to significantly weaken the security of a blockchain, but why do they occur in the first place? The answer is straightforward: Because of the rapid advancement of blockchain technology, hard forks are becoming increasingly important for network improvement. There are a variety of factors that can lead to a hard fork, not all of which are negative; for example, the addition of functionality, identification, and resolution of security risks and disagreements in the community, and reverse transactions on the blockchain network. 

Accidental hard forks can occur as well as on purpose. The majority of the time, these situations are quickly addressed, and individuals who were no longer in agreement with the main blockchain return to it after comprehending what had transpired. In a similar vein, hard forks that provide new features and upgrade the network typically allow individuals who have fallen out of consensus to rejoin the main chain.

Hard fork vs soft fork

To update the software underpinning a cryptocurrency, hard forks are not the only method. In contrast, soft forks are viewed as a safer and more compatible solution, as nodes that do not upgrade will still be considered legitimate on the chain. 

Soft forks may be used to introduce new features and functionalities that do not alter the network regulations. New features are commonly implemented via soft forks. 

It is possible to compare a hard fork with a soft fork to mobile device or computer operating system upgrades. The system will still be able to run all of the apps that were on the device before the upgrade. In this case, a hard fork means a full overhaul of the operating system. It will be able to change everything.

Related Articles

What Is Phishing? How To Detect Such Scams And Prevention Methods

August 11, 2022

What Is Phishing? How To Detect Such Scams And Prevention Methods

As crypto investors, it is definitely compulsory to understand what phishing is. Click now to learn phishing methods and how to prevent them.

Ethereum Price Prediction 2022 – According To The Experts

August 11, 2022

Ethereum Price Prediction 2022 – According To The Experts

Ever since it launched, Ethereum skyrocketed to popularity and is now the second most coveted crypto token. Find out its price prediction.

Bitcoin (BTC) Price Prediction 2022 – 2030 According To The Crypto Experts

August 11, 2022

Bitcoin (BTC) Price Prediction 2022 – 2030 According To The Crypto Experts

Bitcoin Bullish or Bearish Trending Now! Let’s see Bitcoin (BTC) price prediction from 2022 – 2030 before you invest.

We offer investors a variety of opportunities in the digital assets industry. Our innovative platform provides financial access for anyone seeking investment returns anywhere, anytime. Our ecosystem aims at making finance an everyday enriching activity.

ZEI is currently registered under and listed by Bappebti as a candidate merchant. To date, the Indonesian government has established crypto assets as commodities which can be determined as the subjects of futures contracts, which can be traded through the Futures Exchange (of crypto assets).

RISK WARNING ON THE SERVICES

Before you use the Services, you must be aware of the following:

  1. You should not transact Digital Assets if you are not familiar with Digital Assets. Transacting Digital Assets may not be suitable for you if you are not familiar with the technology of the Services that are provided.
  2. You should be aware that the value of Digital Assets may fluctuate greatly. You should buy Digital Assets only if you are prepared to accept the risk of losing all of the money you put into such Digital Assets.
  3. You should be aware that although we strive to provide you with excellent service, we do not guarantee that the Site or Services will be available without interruption.
  4. Digital Assets held in your Hosted Wallet and funds in your Fiat Wallet are not subject to the Indonesian insurance or guarantee scheme as provided by the Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan).