Cryptos:
105
Exchanges:
10
Wallets:
108
Marketcap:
$2,240,897,442,526
Volume 24h:
$35,433,073,909
Soft Fork
Share on social media
What does Soft Fork mean in crypto terms?
A Soft Fork is a backward-compatible upgrade or update to a blockchain network. Unlike a Hard Fork, which requires all nodes to update to the latest version of the protocol software, a Soft Fork only requires a majority of nodes to update. In a Soft Fork, the new rules are a subset of the old rules, meaning that any transaction that is valid under the new rules is also valid under the old rules. However, transactions valid under the old rules may not be valid under the new rules. Once a Soft Fork is implemented, non-upgraded nodes can still validate transactions, but they might not fully understand the new protocol rules, which could potentially lead to a temporary split in the network. Soft Forks are commonly used to introduce new features or enhancements to a blockchain network while minimizing disruption.
Did you find this term clearly defined?
Yes
No
Explore Other Crypto Terms
Fork
A fork represents a significant change or divergence in a blockchain network where the chain splits into two separate paths, each governed by a different set of rules.
Read More
Faucet
A faucet is a website or application that dispenses small amounts of cryptocurrencies for free, typically as a means of introduction to the technology.
Read More
Escrow
Escrow refers to a contractual arrangement where a third party, called an escrow agent, holds and regulates payment of the funds required for two parties involved in a transaction.
Read More
ERC-20
ERC-20 is a technical standard for implementing tokens on the Ethereum blockchain.
Read More
Gas
Gas in the context of the Ethereum network, refers to the unit that measures the amount of computational effort required to execute operations, such as making transactions, running dApps, or executing smart contracts.
Read More
Halving
Halving is a predefined event in the protocol of certain cryptocurrencies, notably Bitcoin, where the reward for mining new blocks is halved, effectively reducing the rate at which new coins are generated by 50%.
Read More
Liquidity
In financial and crypto markets, liquidity refers to the degree to which an asset or security can be quickly bought or sold in the market without affecting its price.
Read More
Liquidity Pool
A Liquidity Pool is a smart contract-based solution primarily used in decentralized exchanges (DEXs) that holds funds to facilitate trading by providing liquidity.
Read More