SegWit2x is the proposal to boost the capacity of bitcoin transactions. This article will explain what is SegWit2x and whether its successful implementation will save bitcoin. We will discuss the process, the potential success or failure and what it could mean. If SegWit2x fails will there be a Bitcoin Fork?
What is SegWit2x? When is the SegWit2x deadline? Will it be successful?
Every one of the questions above are big questions, and although the time frame has already shown that there is general acceptance of SegWit2x, it is by no means the time to cheer in joy and expect the future of Bitcoin to be hunky dory. Let us start tackling the questions one by one.
What is Segwit2x?
There has been much debate over the speed, performance, and capacity of Bitcoin as it stands today. Without a doubt, it is being deemed necessary for the infrastructure of bitcoin to improve. Slower transactions have been defeating the original purpose of the crypto currency.
So the proposals tabled by SegWit2x have gained favour because it proposes the upgrade of Bitcoin in two fundamental ways:
- SegWit2x means Segregated Witness (SegWit) x 2 MB. Segregated Witness is the code optimization that will change how data is stored on the Bitcoin network. Therefore when we are seeing what is SegWit2x – we understand that SegWit2x will adopt the same code optimization of SegWit on one level.
- On a second level SegWit2x will increase the size of the blockchain from the 1MB as it stands today to 2MB – hence the name of SegWit2x. This increase in the block size should occur after three months of code optimization.
The Politics Behind Understanding What is SegWit2x
Nothing is simple in life – least of all understanding all the ins and outs of what is SegWit2x. It is not just a question of understanding the technical difficulties and challenges of implementing the optimization via SegWit2x but also the different schools of thought and the rival politics.
No matter the rivalries, the truth stays one. Bitcoin is dying because its performance is getting weary. Bitcoin is presently limited in the number of transactions it can process. It is not meeting the market demands. The beauty of Bitcoin has always been the speed by which peer-to-peer transactions could be made.
As it stands today, every ten minutes, the number of transactions that Bitcoin can only process, is only up to 1MB.
Heavy use of bitcoin is, therefore, taking a much longer time to approve due to this limit.
Because the demand is high, the transaction fees have become more expensive.
Increase in capacity is expensive and since operators have to store all nodes of the blockchain as computer files, the process is heavier and merits better payment.
Bitcoin Scaling – What is SegWit2x Proposal?
In truth, SegWit2x is not the first proposal to scale Bitcoin. There have been plenty of proposals, but SegWit2x has been more unanimously – but not entirely accepted by different bodies with different interest in scaling bitcoin.
Why has the SegWit2x Proposal Gained Overall Confidence?
SegWit2x is in real terms still adopting the proposal of the original SegWit by Pieter Wullie who has designed the optimization. Wullie’s proposal. This was tabled to Bitcoin Core in 2015 and it meant that the number of transactions could be increased within each block. However, it did not envisage raising the bench mark above the 1MB capacity as it currently stands.
Naturally, this proposal would definitely increase the efficiency of transaction performance. However, it does not envisage a longer term scaling solution.
Segwit2x adops the identical proposals of SegWit but adds an increase in the block size.
What are the Cap Dates for SegWit2x?
This terribly complicated and technical part of network implementation requires that the minors who work in pools all activate the change. Many have been hesitant to embrace these changes. Segwit2x proposal went a step further.
Its adoption started by lobbying at at least 80% of miners will signal endorsement between the 18th and the 20th of July. As of the 21st July the live adoption of SegWit2x started running. The deadline is 1st August, for all mining pools to support it.
This is the only way in which technical issues will be avoided. The question remains, will SegWit2x be embraced unanimously? In the question of what is SegWit2x and whether it will work technically and also whether it will have unanimous adoption.
Will SegWit2x be Successful? What is BIP148 – The Competition
There is much at stake with the successful implementation of SegWit2x. Notwithstanding the politics of who support it and who are against it, the outcome will determine how future of Bitcoin will look.
The groups that support SegWit2x include the mining pools that are currently running the network. Other huge exchanges like Coinbase, BitPay and Blockchain are championing for SegWit2X – as are some notable developers including Gavin Andresen.
On the other hand, other business such as Bitrated and Bitonic are opposing the scaling system. As are more or less all the Bitcoin Core developers. In their hands lies the maintenance system of the software. Therefore the political competition is rife. It is not just the ultimate efficiency of the coin that is in question here, but also the “modus operandi”.
If SegWit2x is successfully implement by mining pools who have promised to support it by the end of July, then the system will be officially activated on the network.
The whole point is that is enough mining pools support and activate SegWit2x before 1st August, and the system works, then a split will be avoided. If, on the other hand, the system does not gain enough support then the rival system namely BIP148 will need to work by its side.
What Will the Bitcoin End User Experience after 1st August?
The bottom line will effect the end user. There are two scenarios that need to be considered.
- SegWit2x gains enough support: In this situation end users should not experience any disruption in the transaction service.
- SegWit2x does not gain enough support. In this case the Bitcoin will fork. Part of the Bitcoin will go under the wing of SegWit2x and part will go under the BIP 148. Recently we have even seen a new faction called Bitcoin Cash vying in on a different system!
What is SegWit2X? Conclusion and Word of Advice
Much attention needs to be placed at the moment. Experts advise to keep a close watch on what can be happening with a Fork. Different systems will merit different upgrades. It is not impossible that you will end up with different coins, that require different maintenance and upgrading.
A word of caution. Around the implementation of the SegWit2x system on the 1st August, it would be advisable to avoid transactions until the situation is clearer.
Please do leave your comments in the comment box below. We will keep a close update on the outcome of the Bitcoin Scaling.