What is Fork?
A fork is the division of cryptocurrencies into different branches from existing blockchain networks. The fork creates a new blockchain network using the same base that is completely inseparable from the base of the existing cryptocurrency. Fork operation can be done to fix an error or improve the system, or it can issue a new cryptocurrency/token that is set up by leaving the blockchain network. As an example of this situation, a fork was created to fix bitcoin errors and a new cryptocurrency, bitcoin cash is created.
What is Hard Fork?
Hard Fork refers to the sharp fork done on the blockchain network. It is an alternative creation of a blockchain to the existing blockchain. The two forks that are created with this hard fork either exist at the same time and work independently of each other or one of the two becomes more dominant. As the name suggests, the hard fork brings stringent regulations with it. Users who have chosen the new fork created do not have the opportunity to revert to the old version. Hard Fork operation is considered by the developers as the last option. The best example for hard fork; Ethereum Classic, or ETC, is a successful fork of Ethereum. It was created after the Decentralized Autonomous Organization was hacked resulting in the theft of 50 million ETH. At the time, the Ethereum community debated what to do, and many decided to use a hard fork.
What is Soft Fork?
Soft fork is defined as the process of innovating in the blockchain network in a way that is compatible with the old software. In addition to the continuation of the chain in the old network, it also enables the transition to the new network. Users who switch to the new network can switch to the old network if they wish. For the soft fork to be fully successful, miners and users often have to accept this new network.
Differences Between Hard Fork and Soft Fork
A new cryptocurrency is not created after a soft fork, but new cryptocurrencies can be formed after hard forks.
While the soft fork complies with the old rules, this does not apply to hard fork.
While an agreement is reached in soft forks, no agreement can be reached in hard forks.
It is to make a copy of the Bitcoin blockchain code and make changes to it. These changes can be created for various reasons; The current blockchain network can not meet the demands, and the differences between the developers may occur due to some reasons. While some forks in Bitcoin were not accepted and were not effective, some forks were adopted by the majority and became permanent. Some of the most important forks in Bitcoin are Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Bitcoin Private.