Today I will be talking about Bitcoin fork (segwit2X) because it seems there has been a lot of confusion about it. People are beginning to ask lots of questions and lots of rumours are just springing up about the Bitcoin splitting technology and its merits or demerits.
Just relax and get educate as you read this article.
Firstly, What is a Bitcoin Forks?
We all know that Bitcoin is simply a software technology that is being managed by various stakeholders. Its rules and management are being determined by some parties such as- Bitcoin miners, users, developers and platforms. These parties all have some level of authority on how they want Bitcoin to operate but I can assure you that they all depend on each other. None of the parties has a final decision as to Bitcoin management.
These parties sometimes get to a stage where they might have a common interest on how to improve Bitcoin, for instance, they might say they want confirmations to be done speedily but at the end, they might disagree on the mechanism proposed for a quick confirmation. Perhaps issues like this could lead to a split in the Bitcoin network leading to the creation of other enhanced Bitcoin replica. Since Bitcoin is a software, developers could easily fork from the current Bitcoin software branch and introduce a new version. The new version will definitely have new rules guiding its mode of operation.
Things You Should Know about a Bitcoin Fork
- Bitcoin fork does not guarantee you an increase or more value for your Bitcoin
- A fork does not necessarily mean that the new incoming altcoin will be of high or any value in the crypto market.
- A fork does not necessarily guarantee security; you could lose your funds.
Segwit and Bitcoin fork
Three months ago, there was a Bitcoin upgrade known as segwit (Segregated Witness: this is a proposal to confirm bitcoin transactions faster by separating its confirmation from the transaction). This took place after a thorough debate before it could be activated. This upgrade brought about the Bitcoin Cash that we all now know of. Although the bitcoin cash is a contradiction of the segwit technology. For a prior knowledge on segwit read this post.
Recently there is a proposal for another split in the Bitcoin network known as segwit2x. This split came with a condition: which is the hard fork where a block size increases during a three months activation period. The segwit soft fork is beginning to gain popularity due to its lower fees for Bitcoin transactions. The New York Agreement (NYA) known as the Silbert or DCG agreement made a deal with several key players (coinbase exchange, Bitman, BitPay payment Service) in the industry. The NYA has demanded a mid-November 2017 hard fork.
Segwit2x is implemented in code as btc1 by Jeff Garzik who is a core developer. Sewit2x is scheduled for activation at block height 494,784.
I believe some of you might have heard of Bitcoin Gold. It is another hard fork scheduled to take place on the 25th of October. We will be bringing you full details soon.
I have made lots of points but as regards to the November upcoming Bitcoin fork, I will advise you suspend any transaction within that period. This is because no one can really say what’s going to happen to the price of Bitcoin. keep checking this site as I will always update you on latest changes on the Bitcoin fork.
Please feel free to leave a comment below