Anyone can contribute to cryptocurrency as it is a decentralized and open-source software.As this software is created with blocks therefore it is known to be blockchain technology.Like the number of transactions occurring in sequence made up of a chain like a long train in which the first transaction will be backed by the next one.Due to its open-source occurrence, the organizations need code or set of rules to maintain and develop this technology and for security constraints also.After coding up the whole process, the blockchain branches out and creates another blockchain that will resemble the first one.If you are interested in bitcoin, learn the challenges in adopting
blockchain technology in IoT.
Ultimately there are two types of crypto forks, one is a hard fork and another one is a soft fork.
Let’s look over the differences between both forks:
Hard Forks: the earlier version of the blockchain becomes invalid which is the motive of the hard fork version.If the older version is still in running mode, it will soon end up with different protocols.
The newer version of data will lead to errors and confusion.Let’s take a look at its example.In the case of a hard fork also known as Bitcoin Cash, the parameters will be changed like difficulty in mining or algorithm, its block size and restricted to additional information which is going to be added, and many more.In case of a change in the rule, the blocks will be accepted by the new protocol.But the previous one will be rejected by them.Hence any type of confusion or problems can be.Moreover, fund loss could also be possible in this scenario.On the other hand, if the size of the block increased from 2 MB to 6 MB.
Well in that case 3MB will be accepted by the new protocol but it will soon be rejected by the older one.Hence a 3 MB blockchain is validated and further added to the blockchain.
The hard introduction in the year of the version of Bitcoin which was worked as Bitcoin Cash induced in 2017.The difference between BCH and Bitcoins is as given: the original cryptocurrency was launched before the time of Bitcoin cash.
The network reach of cryptocurrency is very much better as compared to the hard fork version.
Soft Fork
On the contrary, the soft fork is opposite to the hard fork where the new changes are undeveloped consistent with the older version.For example, in case some changes have occurred in the soft fork protocol and if the developers add on some features to strict the rules to make the blockchain structure stronger, well in this scenario the latest version will not agree to adopt the older version blocks.
The protocols such as SegWit and Segregated witness protocol were adopted by bitcoin.These protocols were accepted in such cases when the number of transactions goes on increasing and becomes a reason for the delay due to the busyness of the network.In some cases, it took just a single transaction to be carried out by enabling the huge number of transactions within a 1 MB block, and hence the transaction processes will be executed fastly and hence the transaction processes executed.
Wrapping up
In comparison to a hard and soft fork, soft work is considered to be best as in this scenario, there would be no threat of fund loss and no extra charges will be carried out at both ends.
Hence soft fork is a self-upgrading process for cryptocurrency.Apart from that, the whole criteria depend upon the community which will decide their priority option..