“Hard fork”o Creates 2 permanent blockchains which is NOT backward compatible.❑ “Soft fork”o Converges back to one blockchain after fork is resolved so is backwardcompatible

It seems like you're asking for an explanation of the terms "hard fork" and "soft fork" in the context of blockchain technology. Here's a step-by-step explanation:

1. Blockchain is a type of distributed ledger technology where data is stored across multiple systems in a synchronized manner. It's the technology behind cryptocurrencies like Bitcoin.

2. A "fork" in blockchain refers to a situation where a blockchain splits into two separate chains. Forks generally happen when new rules are implemented into the blockchain's code.

3. A "hard fork" is a type of fork that creates a permanent divergence from the previous version of the blockchain. Any transactions happening on the old chain won't be recognized on the new one, and vice versa. This is because the new rules are not compatible with the old ones. Therefore, a hard fork is not backward compatible.

4. On the other hand, a "soft fork" is a type of fork where the new rules are still compatible with the old ones. This means that even though some nodes are working with the new rules, transactions on the old chain will still be recognized by the new one. Eventually, as more nodes upgrade to the new rules, the fork will converge back to one blockchain. Therefore, a soft fork is backward compatible.

5. In summary, the main difference between a hard fork and a soft fork lies in their compatibility with the old rules. A hard fork is not backward compatible, creating a permanent split, while a soft fork is backward compatible, eventually converging back to one chain.