The fork is used in both cryptocurrencies and blockchain technology. There are two types of forks: hard fork and soft fork. Forking refers to the process of splitting a blockchain into two new routes. Usually a hard fork or a soft fork is used on the system when network security is compromised.
What does a Hard Fork mean?
The function of a hard fork is to divide the blockchain network into two branches: one of the branches follows the old protocol, while a new one follows a new protocol. Forking takes place only when there arises an urgent need to change protocols in the blockchain network. Once a hard fork is used, users who want to follow the new protocol will need to update the protocol software. Blockchain developers and cryptocurrency users can use hard forks if they see fit. When a consensus is reached on the need to add new rules to the system, it does so at a time when a loophole in the network is detected. Hard Fork is also used when the users of a certain Cryptocurrency platform grow tired of the same old functions. They try to introduce changes that are useful for them.
A hard fork creates a deviation from the previously existing blockchain. Users need software updates in order to carry out transactions. The blocks are divided into two branches. Users with updated versions can use the new route created with the hard fork. The ones those that are not updated will continue with the old protocol for some time before it completely stops. Then it becomes mandatory to update the software.
What is the difference between a Hard Fork and a Soft Fork?
There’s not much difference between a hard and a soft fork; Both forks create a divergence in the existing block and serve similar purposes; however, the hard fork does not consider the previous route invalid as it does with the soft fork. Soft fork does not allow users to use the above path. It invalidates them. There is no transaction on this route. Although more computing power is required to introduce hard fork, all developers are opting for hard fork instead. by Soft Fork.A Hard Fork works more efficiently in the event of a security breach. It covers every terrain for users and makes the operation of the system as smooth as possible.
What are Hard Forks used for?
An exemplary use of hard fork was observed when the Decentralized Autonomous Organization (DOA) was hacked. A hard fork is used to make repairs to a faulty security system, to strengthen the system itself, or to reverse transactions that are well informed due to the people investing in cryptocurrencies like Bitcoin or Ethereum. It is a very safe time to invest in cryptocurrencies as the technology has advanced so far that hacks are being rolled back and users are getting their coins. after he was looted. Platforms for Bitcoin and Blockchain that give beginners a general idea of how cryptocurrencies work.
When a hack like DOA happens, the entire crypto community unanimously decides to introduce a hard fork. Multi-million dollar Ethereum was cashed into DOA’s crypto account. With the help of the hard fork, a smart contract was immediately concluded – the hacker’s account was identified and the hard fork enabled the transaction to be reversed.
Therefore, blockchain technology and the cryptocurrency market have made immense strides with the help of hard fork and can immediately fix problems or inconsistencies in the network.