Protocol upgrades are coordinated modifications to the consensus rules, transaction format, or feature set of a blockchain network, deployed through soft forks, hard forks, or activation mechanisms. They allow a decentralised system to evolve while preserving network continuity and, where possible, backward compatibility. Because no central authority can impose changes, upgrades typically require broad stakeholder coordination and on-chain or social signalling.
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- Upgrades fall into soft forks (backward-compatible tightening of rules) and hard forks (non-compatible changes requiring all nodes to update). Activation can be miner-signalled, validator-signalled, or time/height-locked. The principal challenge is coordinating distributed stakeholders to avoid chain splits while still allowing the protocol to address security, scalability, and functional needs.