Soft Fork
A soft fork is a backward-compatible upgrade to a blockchain protocol where old nodes can still validate new blocks (though they may not understand all new features). Unlike hard forks, soft forks don't require all participants to upgrade simultaneously.
Understanding the Concept
• Backward-compatible: old nodes still work (just with limited features) • Tightens rules rather than loosening them • Lower coordination requirements than hard forks • Less disruptive but more limited in scope
Real-World Example
Bitcoin's SegWit upgrade was a soft fork. It changed how transaction data is structured to increase capacity and fix transaction malleability. Nodes that didn't upgrade could still validate blocks but couldn't fully understand or create SegWit transactions. The network didn't split because old rules remained valid.
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