Is The Threat of Bitcoin Blockchain Split Real

As it turns out, the Bitcoin network is going through vigorous changes and many new changes are about to take place in the coming weeks or months. The Bitcoin reward halving that took place last year had a major impact on the Bitcoin Mining, making the process more difficult and less profitable. Another stumbling block is the scalability problem which is there for quite a long period of time. The specified block size limit of 1 MB is turning out to be insufficient to deal with the increased number of average daily transactions. As a result, the bitcoin blockchain is flooded with impending transactions that are taking longer than usual to be processed.

To make things worse, there’s a new potential threat looming around for quite so long that could divide the bitcoin network. The kind of split that happened with Ethereum blockchain last year, it may result in the formation of a new Bitcoin blockchain. But the thing is, there’s a slight possibility that the newly formed blockchain may not survive the impact.

Also read Why Bitcoin Transactions Are Being Delayed.
 

Why Does The Chain Split Happen?

The chain split takes place when a blockchain fractures into two or more chains. But before going any further, you must know why this kind of split happens in the first place. This kind of chain split is more or less an outcome of a failed consensus during the upgrade. In other words, it generally happens when a majority of participants in a consensus go against the joint agreement right before the upgrade. This has happened with Ethereum forming a new child blockchain called Ethereum Classic and there’s a sharp possibility that Bitcoin might be the next. The chances are more severe than ever before as the Bitcoin network has several crucial implementations just around the corner. First of all, there is this user activated soft fork (UASF) that begins in August. Then there is the long awaited Segwit 2.0 which will most probably start from the coming week and may last till October or November.      

Experts are of the opinion that if there happens to be a split in the Bitcoin Blockchain, it may not be quite as useful as it did in case of Ethereum. As a matter of fact, the formation of a new Ethereum blockchain was a step to ensure that the security of the users and their funds will not be compromised. Instead of refunding the Ethers lost by the users in the demise of DAO security breach, they were transferred to a new address by the formation of a new blockchain.

Why Should One Care?

First off, if there happens to be a chain split in the Bitcoin network, there’s no guarantee that the child chain will survive the impact like it did in case of Ethereum. However, as a Bitcoin token holder, you must stay alert at all times and it’s high time you should secure your Bitcoin private keys before the D-day comes. This is important because your private keys can help you retrieve Bitcoins for both the chains in case the split happens. You must also create a secure backup of all your Bitcoin Wallets as well as the associated files. Also make sure that your wallet app is up-to-date. If not, update it immediately. Have a written record of your passwords and mnemonic phrases. Do all these things and you don’t have to worry about your Bitcoin assets.