Updates are always necessary for a system or software. However, a sophisticated system such as Blockchains cannot call for top-down maintenance to execute modifications as centralized systems can because the power is centralized and changes are simple. On the other hand, blockchains are made up of nodes operating from all over the world and lack a single point of control or failure.

1. What is a Fork in Blockchain | Hard and Soft Fork
Updates are always necessary for a system or software. However, a sophisticated
system such as Blockchains cannot call for top-down maintenance to execute
modifications as centralized systems can because the power is centralized and
changes are simple. On the other hand, blockchains are made up of nodes operating
from all over the world and lack a single point of control or failure.
As blockchains are decentralized, they require forking to make modifications to the
blockchain, such as new rules, bug patches, or soft additions. Let’s look at how to
upgrade crypto networks without a centralized control system.
What is a Fork?
A fork is a modification to the protocol that controls a blockchain. A blockchain fork
is a network update started by developers or community members that can be

2. either radical or modest. It is the concept of changing underlying protocols or rules
of a network by the community.
The projects in forking are developed on familiar ground but are advanced according
to various objectives. These elements were there long before the invention of
cryptography and are fairly typical in open-source projects. Disagreements
regarding embedded features are the primary cause of crypto forks.
Forks are not always intentional. When not all nodes are copying the same data, a
fork might unintentionally occur in a widely dispersed open-source codebase. These
unintentional forks are often located and fixed. Intentional forks can also be divided
into soft forks and hard forks.
What is a Hard Fork?
A hard fork is a significant modification to the protocol of a network that makes
previously invalid blocks and transactions valid or vice versa. A hard fork requires
that all nodes or users upgrade to the most recent version of the protocol software.
The blockchain splits into two parts: the old blockchain and a new blockchain with
reforms.
It modifies the blockchain protocol's rules in a way that renders the previous
blockchain and the new one incompatible. As a result, the newly modified blocks
won't be accepted by the old nodes, and the new blockchain will function according
to new rules that consistently reject blocks from the previous blockchain.
What is a Soft Fork?

3. A soft fork is a minor modification that does not change the rules a blockchain must
follow. It permits non-updated nodes or old nodes to continue operating on the
network. Unlike a hard fork, this type of fork requires merely a majority of miners to
upgrade in order to implement the new rules.
Soft forks do not require any nodes to update to maintain consensus because all
blocks with the new soft forked-in rules also match the old rules, so old clients
accept them. However, a soft fork cannot be reversed without a hard fork, as a soft
fork only permits the set of valid blocks to be a correct subset of what was valid
before the fork.
Accidental Forks
When many miners mine a new block at almost the same moment, the whole
network may disagree on the new block's selection. Some may accept the block
mined by one party, resulting in a new chain of blocks from that point on, while
others may agree on the other block possibilities available.
This occurs because it takes a certain amount of time for information to travel
throughout the whole blockchain network, resulting in conflicting perspectives on
the chronological sequence of occurrences. Two or more blocks in this fork share the
same block height. Accidental forks are resolved by the blockchain itself.
Why do forks happen?
○ To resolve a disagreement within the community: In 2017, the Bitcoin
network was split into two different chains: Bitcoin (BTC) and a new one,
Bitcoin Cash (BCH). The fork happened because certain members of the
community sought to fix Bitcoin's scalability issue. The hard fork
supporters wanted to raise the block size, while the opponents did not.

4. ○ To add functionality: The Blockchain code is updated on a regular basis.
Because most public blockchains are open source, they are created by
people from all over the world. When the time is right, changes are made,
problems are fixed, and new versions are launched.
○ To address security risks: Updates are pushed and patches are published to
address any security concerns that develop along the route. For instance,
Polygon quietly carried out a soft fork in November 2021 after finding out
about a vulnerability in one of its verified contracts.
○ To reverse transactions on a blockchain: If a given period's transactions are
proved to be stolen and hacked, the community can actually void them
altogether.
How do forks work?
Basically, a blockchain is a collection of data blocks linked together by safe
cryptographic keys that form a chain of blocks going back to the first block. As all the
blocks are linked together by a consensus that all of the blocks agree on, each system
update requires a change in agreement on all of the blocks. But it is impossible to
achieve such a consensus.
Thus, rather than rewriting each block, updates to a blockchain are sometimes
accomplished through the use of a fork. In a fork, the original software is copied and
the desired changes are made to it. Forks work by making updates to the
blockchain's software protocol. They are often linked to the generation of new
tokens. Common methods of producing new coins is from scratch or to 'fork' the
existing blockchain.
The most popular way is to create fresh tokens from scratch. This approach entails
copying and pasting existing code, which is subsequently launched and launched as
a new token. The network must be rebuilt from the ground up, and individuals must
be persuaded to utilise the new coin. The other option is to split the existing

5. blockchain. Rather than beginning from scratch, this strategy modifies the current
blockchain. As the network divides, two copies of the blockchain are formed.
A fork can only be done when participants on the network agree on a course of
action and execute improvements that improve overall efficiency. For example, since
miners provide the computing resources required to maintain the network, any
forked version that is approved by the miners is likely to prevail. Other subset jobs
include developers, who write and update the code that runs inside the blockchain,
and full node users, who serve as the network's backbone and auditors by validating
and maintaining the blockchain's history.
Impact of Forks
The impact of any hard or soft fork on the blockchain is determined by the
environment and other factors. Forks affect the following entities and institutions in
the blockchain process:
Miners: Crypto miners are the primary driving force behind the adoption and
inclusion of any upgrade process or fork. They must assess if incorporating the
Improvement Proposal will optimise functionality and income, among other
benefits.
Developers: Developers might be considered a resource as well. If a fork occurs as a
result of development concerns or software faults, human resources are going to be
divided, resulting in vacancies that may not be readily filled, hurting service and
operations.

6. Exchanges: The split does not divide the number of digital assets held by an
address, but it may divide the value of the digital assets or cryptocurrencies held by
the address. For example, if a user/address has 2 BTC prior to the fork (Bitcoin to
Bitcoin Cash), the value after the fork remains 2 BCH (Bitcoin Cash), but the
valuations of the same amount of Bitcoin and Bitcoin Cash in today's crypto market
are substantially different. It is up to the exchanges to implement features that allow
users to get tokens based on the new or old fork.
Investors: When it comes to investing in forked commodities, the market is quite
volatile. This upheaval caused by a controversial hard fork causes a dramatic price
change. Uncertainty exists in new forks, as well as in existing forks, depending on
public and market perception. This is one of the elements that blockchain
communities must examine while deciding on the proposal that may result in
blockchain splits.
Conclusion
Whatever the sort of split, it is evident that more work has to be done to enable a
smooth transfer of blockchain updates and upgrades. Hard forks are preferred by
the majority of blockchain miners and merchants because they reduce the danger of
validating or mining faulty blocks. On the other hand, they use a large number of
computing resources and are seen to be damaging to the future of cryptocurrencies.
Despite their inherent hazards, soft forks provide a considerably speedier
alternative to blockchain software changes without consuming excessive computing

7. resources. Soft forks are also praised for their ability to introduce upgrades without
dividing the community.