Who actually decides if a major crypto update goes ahead?

Solana successfully completed its largest upgrade in six years this week. Meanwhile, another important update for XRP is facing further delays. Two major crypto networks, but a very different outcome.

Such upgrades are important because they can improve the technology behind a cryptocurrency. Think of faster transactions, better security, or new capabilities. However, it is not always a given that a planned change will actually go ahead.

So who actually determines what happens with a crypto network? And how is it that an update for Solana is implemented smoothly, while it takes longer for XRP? The two recent events provide a nice glimpse behind the scenes.

In short:

• A crypto update can only proceed if enough network administrators cooperate.

• Solana implemented a major upgrade this week, while an XRP update was postponed again.

• In a hard fork, a blockchain can split into two separate networks.

No one decides alone

The short answer is that no one decides alone. The switch to Alpenglow went well for Solana this week. This new system determines how the computers behind the network agree on valid transactions.

The developers created the software, but they could not enforce the change on their own. Administrators of the controlling computers, called validators, voted earlier on the plan.

The more Solana a manager had behind them, the more their vote counted. At least two-thirds of the votes had to be in favor. Additionally, at least one-third had to participate.

After the voting, the validators had to install suitable software. Only when enough administrators had switched over could Solana start working with the new rules this week.

Support for XRP can disappear again

The XRP network uses different rules. A proposed change must, according to the official explanation, maintain uninterrupted support of over 80 percent from trusted validators for two weeks.

A recent XRP update went wrong. It involved a package of repairs to the network's software, including features related to loans and digital assets.

Just before the deadline, support for the update fell below the required threshold. As a result, the update was postponed again by two weeks.

On Thursday, October 22, a measurement showed that 31 of the 35 trusted validators supported the proposal. If that support holds, the change can be activated on November 4.

When does a hard fork occur?

A dissenting vote or missed update does not automatically create two blockchains or a second cryptocurrency. On the XRP network, servers with old software can no longer participate after a change. They are blocked until their administrators update the software.

A hard fork is a change in the rules that allows a blockchain to split into two versions. This can happen when a group continues to use the old rules while others switch to the new ones.

If both groups maintain sufficient support, two separate blockchains can coexist. Sometimes a second cryptocurrency also emerges. However, not every major update leads to such a split.

When does a hard fork occur?

What happens if the administrators of a crypto network cannot agree on new rules?

In exceptional cases, this can lead to a so-called hard fork. Then the crypto network splits into two versions. Such a network is also called a blockchain.

In a hard fork, one group can continue to use the old rules while others switch to the new ones. If both groups have sufficient support, two separate networks can continue to exist. Sometimes a second cryptocurrency also emerges.

A well-known example is Bitcoin. In 2017, a second network with its own cryptocurrency, Bitcoin Cash, emerged after a conflict over the rules. Both still exist alongside each other.

A hard fork is therefore something very different from an update that is simply postponed because there is not enough support yet.