On-Chain Analysis and Forks: Understanding Soft & Hard Forks in Blockchain

Test Your Knowledge

1. What is the main purpose of on-chain analysis?

A) To analyze blockchain transaction data for trends and patterns

B) To mine new cryptocurrencies

C) To create blockchain forks

D) To generate new blockchains

2. What is a key characteristic of a soft fork in blockchain technology?

A) It creates a new cryptocurrency

B) It requires all nodes to upgrade to the new rules

C) It is backward-compatible and does not cause a network split

D) It leads to major security risks such as replay attacks

3. Which of the following is an example of a hard fork?

A) Segregated Witness (SegWit) in Bitcoin

B) Ethereum’s gas fees increase due to network congestion

C) Bitcoin Cash (BCH) from Bitcoin (BTC)

D) A miner adopting new protocol rules on the network