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In short, the soft fork and hard fork is a change (update or warn) over the protocol or node in the eco-system of the Crypto blockchain and it happens to Bitcoin, Ethereum, Dogecoin, Litecoin, Bitcoin scrypt and so on.
SUMMARY SOFT FORK.
Bitcoin software is open source in terms of code and available for all viewing and use.
When there are some changes that need to be made into the source code inevitably, Soft fork is to ensure that it remains in line with the established purpose.
This changes in soft fork it remains the foundation of blockchain properties, without any split in the blockchain eco-system.
SUMMARY OF HARD FORK.
Hard fork in digital currency involves the separation of the blockchain path by canceling a transaction verified by a node that has not been upgraded to a new version of the protocol software.
This change of protocol or node is for example by increasing the Bitcoin Block capacity from 1MB to 10MB.
Basically, creating a fork in the blockchain is a path that follows the upgraded, new block, and A road that runs along the old road.
Hard fork can also be implemented to identify and amending the important security risks inherent in the old version, to add new functionality, or to transfer transactions (as in hard-fork cases to reverse hacking on DAOs (decentralized autonomous organizations) that occur on Ethereum.
Ethereum Classic successfully hard forked October 25th. They made an upgrade to their network to stop exploiting attacks a vulnerability in the system.
BITCOIN HARD FORK
Bitcoin Cash successfully Fork on 1 Aug 2017 by setting the same code as Bitcoin (Classic).
Chain separation is done and the limit of 1 MB has been removed.
After existence of Bitcoin Cash (algo SHA256) resulted, the overall eco system blockchain especially in bitcoin experienced rapid increased.
25 Oct 2017 Bitcoin Gold was created successfully.
Hard Fork Bitcoin Gold is a new Bitcoin decentralization system to handle mining equipment problems that dominated by small entities or groups that use large-scale of Asic hardware extensively and caused restriction to small or medium miners.
The drastic change happening on Bitcoin Gold is altering Bitcoin’s work-proof algorithm from SHA256 to Equihash.
Altering proof of Bitcoin’s working algorithm from SHA256 to Equihash, all of the SHA256 (Asic) mining equipment will become obsolete and slow down the Bitcoin Gold discovery block.
Therefore, Bitcoin Gold will give people around the world the chance to participate in the excavation process with only GPU-Rig devices.
More decentralized democratic mining infrastructure is more resilient and more suited to Satoshi’s origin of “one CPU one Vote”. This will return the solo miner run independently, even with a little prize.
Mid November, another algo produced as Segwit2x.
All the coins mentioned above are the result of what it is known as Hard Fork from Bitcoin blockchain.
There are 2 common agreements to validate bitcoin transactions, whether the bitcoin core (segwit) or bitcoin unlimited.
If one node use segwit2 and another use bitcoin unlimited, the block cannot be confirmed and this causes of network congestion.
Like Bitclub-Network, it uses bitcoin unlimited – initially using segwit2.
It is to ensure that blocks can be verified, miners get rewarded, and there is no network congestion especially in terms of payment transaction.