The next Bitcoin fork has both supporters and opponents. What is the essence of the disagreements and is described in this article.
Splitting Bitcoin is quite possible once again. Scaling scenarios for a rapidly evolving market differ for miners and developers. For this reason, according to Bloomberg, we should wait for the 3rd fork, the popular cryptocurrency.
What market experts think
According to some significant players in the crypto market, including the famous investor of virtual currencies Roger Ver, the likelihood of reaching an understanding between the disputing parties should not be expected.
The same opinion is shared by some significant mining pools, as well as programmers involved in the development of Bitcoin Core. As a reminder, the latter is an official Bitcoin client.
The last weeks were marked by the fact that the virtual currency was differentiated into 2 branches. Now, in addition to the original version, there is also a version called Bitcoin Cash.
Roger Vera's reaction was expressed in the transfer of part of his own funds to the resulting fork, because, in his opinion, there will be another division into two arms. And this will happen before the end of this year. Taking into account the fact that more coins will be created, it is possible to earn money on this, according to the specialist.
What is the essence of the controversy
The reason for the controversy that sparked the split of Bitcoin was the size of the "block". This is the name of a package containing virtual currency transactions until they become part of the blockchain. It contains a history of every payment ever made with Bitcoin.
When creating the alternative currency protocol, the legendary Satoshi Nakamoto introduced a block size limit. As a result, the system can only process seven transactions in one second.
For the same period of time, for example, Visa processes several thousand transactions. And despite the sustained growth in demand, the pace of the system began to slow down. To speed up the transaction, the user is forced to send several dollars to the miners.
It would seem that there is nothing easier than solving this problem: increasing the size of the blocks. But this will complicate the mining of crypto coins and increase its duration, which means that only owners of industrial mining farms will feel the benefits.
What could happen
One of the factions is now demanding to update the network in November. But if the upgrade is not done by all, then one global registry is divided into two. In addition to the original version, its counterpart appears due to the fork.
Up to this point, the identity of both registries was absolute, since they are united by a common payment history. But from that moment, as each block is found, transactions at the registries become different, which means that the balances will no longer correspond to one another.
In order to combat the increase in transactions, a compromise proposal was made in the form of the SegWit2x plan. In August of this year, miners agreed to implement the initial stage of this project called SegWit. Within its framework, it is expected that during the month of November there will be an increase in the block size, after which it will become equal to two megabytes.
To implement the second phase, you need to get consent from 92% of miners. However, according to Wang Chun, who is one of the owners of the F2Pool pool, this is unlikely. And this is despite the statement of agreement with SegWit2x by 93% of miners and developers as recently as in July this year. It seems that there have been some changes in their ranks.
This project is supported by most of the developers working in Bitcoin Core. Moreover, some individuals expressed a desire to continue working exclusively on SegWit. This is explained by the fact that today this version of Bitcoin is considered the most attractive. Its capitalization is almost $ 64 billion.
In a statement by Samson Moe, it is said that a large number of users, miners, companies and developers expressed their disagreement with the incomprehensible fork of two, and in the near future three blockchains.
But he holds the position of Chief Strategic Director at Blockstream, and has close ties with Bitcoin Core. Only the main blockchain supported by developers in collaboration with users will be able to survive, he added.
For the sake of fairness, we should also mention the advantages that the resulting forks have. So, the transition to Bitcoin Cash makes it possible to increase the block, increase speed and reduce the cost of transfers. Support for the new coin has already been announced from a number of cryptocurrency exchanges and owners of Bitcoin wallets. And this despite the fact that BCC is only a few weeks old.
In conclusion, we can agree with the presence of worthy arguments from each of the disputing parties. However, the new fork definitely worries about both.
The Topic of Article: Bitcoin Split Again, Now In November.