How network upgrades happen
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
A network upgrade moves through stages: a specification proposal, discussion, implementation, testing on test networks, and finally an activation point on mainnet. With no central administrator, it only takes effect when node operators actually install the new software. Pushing ahead without agreement splits the chain.
Key points
- Proposal, discussion, implementation, testing, activation
- It only takes effect once operators upgrade
- Without agreement, the chain splits
- Activation is pinned to a block height or epoch
Definition
The full process of changing a blockchain's protocol rules and switching the network to them, with the activation point specified in advance by block height or similar.
On most chains, proposed rule changes are published as numbered documents — EIPs on Ethereum, BIPs on Bitcoin. Proposals are examined in public, where technical soundness and the impact on existing operations get worked out.
Once an implementation settles, it activates first on test networks. Unexpected defects found there push the schedule back. Mainnet activation is then pinned to a specific block height or epoch number, from which the new rules apply.
Crucially, nobody can force the switch. It happens only as node operators, validators, exchanges and wallet providers each upgrade. A node that does not will judge blocks under the new rules invalid and go on following a different chain.
If the change is backward compatible — a soft fork — old nodes keep accepting new blocks. If it is not — a hard fork — nodes that do not upgrade are definitively separated. Which kind a change is gets announced in advance.
Watch out for
- · Exchanges often suspend deposits and withdrawals around activation, freezing funds for a while
- · A node left un-upgraded follows a different chain and shows balances that no longer match reality
- · Forks attract scams promising a 'new token' to anyone who acts first