What is SegWit2x? What Is All This Confusion For?
Bitcoin is preparing to go through the biggest (and least understood) software change to date.
Bitcoin, which is often simply called a “digital currency”, is best expressed as a set of data in certain amounts (blocks) dimensions. It can be defined as a protocol that transmits and stores. The data here is Bitcoin. The storage location is the blockchain. Because Bitcoin is decentralized, many help the network to function, and when choosing to run its software, they all agree to abide by the same rules so that the network continues to operate operationally.
This plan, called Segwit2x, includes a very special fork (or a change to bitcoin rules). Thus, some rules that were not valid before will be implemented. Specifically, Segwit2x will change the size of blocks that regularly pass over the network, increasing from 1MB to 2MB.
Some think it’s a good idea, while others don’t.
For a start, however, it’s important to note how this division differs from the others. Bitcoin users who witnessed the Bitcoin Cash and Bitcoin Gold splits are already familiar with some of the consequences that may not be guaranteed in the case of Segwit2x.. If you had Bitcoin on certain exchanges or in your wallet, the money that came with the split was automatically transferred to your account.
This smooth transition is not guaranteed with Segwit2x.. Segwit2x is in many ways much more complex, but in some respects it is similar to other Bitcoin splits.
Segwit2x’s other splits are similar:
- Alternative software – A variant version of Bitcoin software is used by network participants and contains protocol rules.
- An attempt to increase the block size – Most forks focus on one particular aspect of the network, while capacity can be increased by many other optimizations (e.g. block size).
- Hard bifurcation – Anyone whose software has not been upgraded to the new rules will no longer be part of the network.
With this First of all, although Bitcoin Cash developers have come up with the content to create a new blockchain (with new rules), the point of Segwit2x is that all Bitcoins exist is to keep its users on a single blockchain.
This way Segwit2x can produce different results. These are:
- Bitcoin rules change. Most miners (or all) will update their software. The Bitcoin blockchain continues to work but has larger blocks. Segwit2x’s rules become the rules of Bitcoin.
- Two Bitcoins are created. Only some miners update their software. This creates two blockchains – “legacy” Bitcoin and “Segwit2x” Bitcoin. Both are unique cryptocurrencies with different rules.
- Bitcoin rules do not change. Significantly, the miner does not use new software. The network continues to operate with the existing rules.
Supporters and Opponents
However, when it happens, users are most likely to The worrying result is the second result.
This is because supporters and opponents of change both enjoy support from different parts of society. In short, although Segwit2x claims to own the majority of miners and exchanges, it cannot be said that 100% of users support a single party.
Segwit2x’s top support groups are:
Miners – Network users running the hardware needed to secure the blockchain and profit from Bitcoin’s block rewards.
Entrepreneurs – Businesses that make a profit by providing Bitcoin users with a service that allows them to spend, store or buy cryptocurrencies.
Aspects of Discussion:
Bitcoin should be a digital currency. Must fight US dollars or other official currencies. Thus, priority should be given to its use as a medium of exchange.
Competitors win due to Bitcoin’s inactivity. They believe that protocols other than Bitcoin continue to gain competitiveness because they are useful in payments.. Currently, these protocols are gaining the value that Bitcoin should normally receive.
Available updates are insufficient. They say that the addition of code to the blockchain in August did not deliver the promised capacity increases.
Groups Opposing Segwit2X (No2x):
- Software Developers – The volunteer group that provides the code for Bitcoin. This group includes many people who have arguably the longest working time on the Bitcoin protocol.
- Node operators – Blockchain’s Bitcoin users who keep copies of their entire transaction history.
Disputed Points:
- Bitcoin is a store of value , not a payment network. They think the second possibility is possible as technology advances in the future.
- Segwit2x is risky.
- They believe that if Bitcoin transactions are interrupted or fail, it can weaken the entire project.
- Segwit2x gives miners and business owners a lot of power. They argue that this centralizes decision making for a decentralized network.. It weakens Bitcoin’s strongest point.
What is the Probability of Splits?
For now, to be precise too early for. With that in mind, however, there are some indications given Segwit2x’s encoding mechanism.
- Segwit2x uses BIP 9 activation. This means that the rule change is in the percentage of miners that run the new code.
- Miners mostly support Segwit2x. 1Hash, Bitfury, Bitmain, Bixin, BTC.com, BTCC, BTC.Top, and ViaBTC signed the original agreement in May.
On paper, roughly 80% of network miners stated to have signed the plan, these groups are believed to be large enough to switch the network to the Segwit2x chain.
The logic here is – the Segwit2x chain will accumulate the fastest mining power, thus making the original Bitcoin mining unprofitable. A mass migration to the new blockchain will be achieved.
While more complex, the reasons include:
- Many people use Bitcoin Supports Cash. Bitcoin’s China-based community tends to invest more in this Bitcoin alternative. The 8 MB block size is relevant here.
- Miners are unlikely to act unilaterally. Signatories such as ViaBTC and BTC.Top are primarily mining pools that sell software subscriptions to other miners. This allows users to use Segwit2x, but not all users are guaranteed to migrate.
- Some miners do not support it. This includes exchanges called F2pool, which owns 5.6% of the network, and Slushpool, which owns 7.3% of the network.. These two said they will not use the new code.
The important thing here is that Segwit2x cryptocurrencies will have value in the eyes of customers.
Some exchanges are already experimenting with listing a version of the new code.. They are also testing its possible value with a method that only works on their own registry.
Currently, the price of the new version of Bitcoin is estimated to be just over $1000.. This is twice the price of Bitcoin Cash, and about seven times the price of Bitcoin Gold.
When Will All This Happen?
Despite the existence of many conditions, the new fork is 16 It is expected to be around November.
However, an exact date cannot be given.. This is because the fork will occur from a certain block (494,784). block). From this block, miners will be able to use the new software.
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