“At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward — either with regard to a network’s transaction history or a new rule in deciding what makes a transaction valid”
Hard Fork: A hard fork is a software upgrade that introduces a new rule to the network that isn’t compatible with the older software. You can think of a hard fork as an expansion of the rules. (A new rule that allows block size to be 2MB instead of 1MB would require a hard fork).
Soft Fork: A soft fork, by contrast, is any change that’s backward compatible. Say, instead of 1MB blocks, a new rule might only allow 500K blocks.
“We have a standoff. Core is not willing to compromise on larger blocks, given further risks of centralization and miners are not willing to adopt Segwit and impact their fees”
“I’m a big believer in Free Markets. The market will decide which flavor of Bitcoin it wants to back. Right now, I think the market is just waking up to the reality that high prices will ultimately result in a hard fork. Conversely, if the miners realize that the market doesn’t believe that the current path they are taking is acceptable, they will be punished by the price”
“It’s inarguable that Bitcoin is the single strongest brand in the crypto space. I believe it probably received $2–5bn in free media exposure over the years. A Hard Fork would create 2 brands of Bitcoin ” “The moment there is a hard fork, we are going to allow brand confusion to step in. This is a HORRIBLE idea”
“Creating two networks destroys network effects (payment providers, merchants, etc) and the Bitcoin price is non-linear to size of network, so the two coins combined will not equal the same price”
“In Bitcoin, code is law, so the Developers are like the legislative branch. Miners execute the law (or not) through activating (or ignoring) the features developed, so they’re like the executive branch (note the veto power). Users ultimately have the power to walk away from Bitcoin at any time by selling their holdings or they can voice their enthusiasm by buying more. Users adjudicate new features through price signals. In that way Users are the judicial branch”
“If you’re missing any one of these groups, Bitcoin’s value proposition drops very quickly”
“We might best understand Bitcoin as a microcosm of how a new, decentralized, and automated financial system could work. While its current capabilities are still limited (for example, there’s a low transaction volume when compared to conventional payment systems), it offers a compelling vision of a possible future because the code describes both a regulatory and an economic system”
“A new decentralized financial system made possible with cryptocurrencies could be much simpler by removing layers of intermediation. It could help insure against risk, and by moving money in different ways could open up the possibility for different types of financial products. Cryptocurrencies could open up the financial system to people who are currently excluded, lower barriers to entry, and enable greater competition”