Bitcoin To Have SegWit 2x Activation Starting From August

Posted By : Anirudh Bhardwaj | 20-Jul-2017

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For years, there have been numerous debates pertaining to the existing block size of the Bitcoin Blockchain. The number of Bitcoin transactions are increasing by leaps and bounds. The whole burden however, is imposed on the Bitcoin Miners who are responsible for approving each and every transaction. The block size of 1 mb assigned to the miners for each block is turning out to be inadequate to deal with the increased number of transactions. The current block size of 1 mb can handle up to seven transactions every second. But in the present scenario, hundreds of transactions are left unapproved every day. On an average, it takes about 10 minutes to mine a new Bitcoin but an average bitcoin transaction may take up to 20 minutes for being processed. That too, only happens if you are paying a decent transaction fee to the miners. If not so, it may take hours or even days depending on the number of impending transactions.

 

Also read Requisite Support for Bitcoin Segwit Update now seems Attainable.

 

Why Wasn’t SegWit Activated?

Over the course of time, numerous solutions have been proposed to deal with the Bitcoin scaling problem but SegWit (BIP 141) is the one that got maximum heat. Instead of increasing the existing block size, SegWit proposed a different solution that would eliminate the transaction malleability issues persisting in the Bitcoin network once and for all. The main idea is to disengage transaction signatures from the transaction and send them separately to the intended receiver. This would further, reduce the size of each transaction so that more number of transactions can be handled per block. Given the circumstances, it seemed to be the best solution but  even after gaining support from more than half the Bitcoin community, it still has been in a grey area for quite some time.

 

There are many reasons as to why SegWit couldn’t be implemented. First off, it required more than 95% of the mining hashrate. Second, it was a soft fork solution while a number of miners were in favor of the hard fork update. And so it couldn’t make its way to the Bitcoin landscape.  


 

SegWit 2x: It’s Still Alive!

After many failed attempts to implement SegWit, the developers devised a new proposal which is all set to revamp the Bitcoin Blockchain. SegWit 2x as it’s called is the combination of SegWit and a 2 MB hard fork out of which the hard fork will be activated three months post the activation of SegWit. The only difference between SegWit and SegWit 2x is that the latter also incorporates a 2 MB hardfork. Also, SegWit 2x has a lower activation threshold. Unlike the previous proposal (BIP 141), SegWit 2x requires 80% of the mining hashrate. The good thing is, it has already met the threshold and the activation process is going to start from August 1. SegWit will be implemented first and then after three months or so, the 2 mb hard fork will be activated. With the hardfork activation, there’s also a sharp possibility that Bitcoin could encounter a blockchain split. The kind of split that happened with Ethereum last year, thereby creating a new child blockchain called Ethereum Classic. Now let’s see how it turns up for the Bitcoin and its users.    

 

About Author

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Anirudh Bhardwaj

Anirudh is a Content Strategist and Marketing Specialist who possess strong analytical skills and problem solving capabilities to tackle complex project tasks. Having considerable experience in the technology industry, he produces and proofreads insightful content on next-gen technologies like AI, blockchain, ERP, big data, IoT, and immersive AR/VR technologies. In addition to formulating content strategies for successful project execution, he has got ample experience in handling WordPress/PHP-based projects (delivering from scratch with UI/UX design, content, SEO, and quality assurance). Anirudh is proficient at using popular website tools like GTmetrix, Pagespeed Insights, ahrefs, GA3/GA4, Google Search Console, ChatGPT, Jira, Trello, Postman (API testing), and many more. Talking about the professional experience, he has worked on a range of projects including Wethio Blockchain, BlocEdu, NowCast, IT Savanna, Canine Concepts UK, and more.

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