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From August 1 Bitcoin can be divided into two or more versions
Material posted: Publication date: 22-07-2017
The time of confirmation of transaction in the Bitcoin network is gradually increasing. Experts believe that it's all in the influx of participants, the system simply is not designed for the amount of users that are now working there. All of this can lead to tragic consequences. For example, bitcoins, obtained after disruption of the network may disappear from the wallet or become another type of cryptocurrency, a fork (certainly not myself) who will not take the sellers and various services.

But once the situation is resolved properly, everything will fall into place. The time of confirmation of the transaction will be the same. Here are the solutions to the problems may be several. Now the community of miners and users of the cryptocurrency discusses this possibility, as the activation of a new Protocol for the operation of the entire network. The decision should be up to 1 August this year. Date August 1 — critical, what will happen in that day, will determine the future of Bitcoin.

Generally speaking, there are two most popular solutions to the problem are discussed. Be the first to suggest supporters of camp Bitcoin Unlimited (BU), the second — Segregated Witness (SegWit). July 21 will be presented a new Protocol SegWit2x that asked to move the majority of miners. If the end of the month, by August 1, it will move the vast majority of market participants, namely about 80%, then all is well. If less, then it may be a situation when there are two forms of cryptocurrency bitcoin is one based on Protocol SegWit2x, while the second will remain on the old Protocol.

While most market participants agree that Segregated Witness (Segwit2x) — a decent way out of the situation. This solution was proposed by a team of developers of Bitcoin Core, it supported the largest mining pools from China. In particular, the transition to Segwit2x consider it necessary OKCoin, Huobi, BTCCPool, Bitmain, F2Pool, BTC.Top ViaBTC, BiXin, BW, 1Hash, Canoe, BATPool, Bitkan and others.

SegWit allows to optimize the block size, which allows to solve problems with the scalability of the bitcoin network, which is now overflowing with blocks of transactions. In particular, reduction of transaction confirmation times, respectively, and reduced the fee. SegWit — Protocol which allows to increase the efficiency of the blockchain without increasing the size of the block.

Currently the block size is 1 MB, the speed of transaction processing — 7 units per second. For comparison, the Visa system handles thousands of transactions per second. If the block size is reduced, this will lead to an increase in the cost of transactions on the blockchain, which might scare ordinary users of the system.

Segregated Witness allows you to extract the signature of the transaction by placing it in a standalone data structure. If the signature is removed from the transaction, the transaction size is reduced. Thus, the approval time can be reduced by 47%. Accordingly, the system will process per unit time two times more transactions than before the transition to the new Protocol.

SegWit will increase and the reliability of the protection system. With the introduction of a new Protocol for the safety of participants will be ensured by the method of proof of fraud, which is particularly relevant in relation to so-called "light wallet".

Another solution is a UASF, which also launches in the Segregated Witness, but support will be provided by the holders of the gcd, not the miners.

In General, if a consensus can be found, no split will occur, and the system will be in normal mode. If Bitcoin is divided into two parts, will experience various difficulties, including the possible refusal of one species by the other bitcoin supporters. The course will be very volatile, especially if there are not two, but four varieties of the cryptocurrency. We are talking about
Bitcoin 148, NewPoW Bitcoin Bitcoin Bitcoin ABC and Legacy. If this happens, the exchange may suspend all operations indefinitely.

What to do?

We recommend the following steps:

  1. Stop taking payments in bitcoins for 12 hours until 1 August 2017 02:00:00 GMT+0200. After a couple days you can try again to start the process of accepting payments;
  2. If you are going to send payment at about this time, it is worth remembering that exchange and processing services may stop working;
  3. You should not store your bitcoins on the exchange, which does not allow to create local copies of private keys;
  4. You should not buy bitcoins shortly before 1 Aug. Volatility can be very high.
  5. The payments will arrive in your wallet August 1, you can just disappear, so do not conduct transactions at that time;
  6. It is also not advisable to pay anyone for anything 1st of August.

Source: https://geektimes.ru/post/291093/

Tags: finances , bitcoin


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