Lots of interesting things going on with Bitcoin at the moment. Because I realize not everyone on Steemit is into crypto. I'll try to make this write-up as easy to understand as I can.
The block size for Bitcoin has been a problem for a while. It's not big enough (1MB) to fit in all the transactions that users want to make.
Therefore there is a huge backlog of transactions waiting for a block increasing the transaction times. Making the whole system slow.
(You can compare it to a train station where a train arrives every 10 minutes and has not enough wagons for all the passengers to get in. But new passengers are arriving all the time. Before you know it you have a line outside the station.)
For miners, this is actually great news because now users need to add a big fee with their transaction to get in front of the line and get their transaction go through. It's a good extra source of income for miners but bad for users.
It's been tried before to increase the block size but consensus could never be found. Therefore we are still stuck with 1MB blocks.
Some users got so sick of this they decided to take matters into their own hand. They want to force a decision by implementing a UASF (User activated soft fork).
What they will do is basically only accept blocks from miners that signal with their mined blocks that they support Segwit. Segwit is the term used for a block size increase. Blocks from miners that don't signal support for Segwit will be ignored. This UASF will happen August 1st.
source: coindesk.com
This UASF made Miners and Bitcoin companies a little bit scared. So they agreed to meet in New York to talk about it. They decided to implement Segwit on their own terms so they came up with Segwit2X and they want to implement it before August 1st. Preventing all that UASF Stuff and god knows what all those users might come up with.
The current support for Segwit2X is 88.2% amongst miners. If the support is higher than 80% on July 21st. It will lock in and activate 2 weeks later.
3 months after that it will be hard-forked into the blockchain on November 1st. With hopefully 100% miner support.
Scenarios and opinions
Everybody has an opinion about what is right and wrong with Bitcoin at the moment. Some say Bitcoin should never increase it's block size and should become a store of value instead of a usable coin for small transactions. They say that even with 2MB blocks it's still so outdated. (10 minutes transaction time vs 3 seconds with STEEM for instance).
But it's also the most popular crypto and if users and companies have to work with it, it would be beneficial for the whole crypto space if it at least works without delay.
My personal biggest fear about this whole Segwit2x is that if it fails we will end up with 2 different Bitcoins (or more). It will cause major confusion in the markets about which is the real one. I'm also not too happy about the rush at wich this Segwit2x is being implemented because of the UASF fears.
I hope they checked the code.
Interesting times ahead! That's forsure.
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I fail to find a good source where I can see what the support for segwit2x is. Can you link me a good source?
Here: https://coin.dance/blocks
Bookmarked. Thanks!
Good post !!
Just learn and few things from your post.
Leave it at 1mb, it will be like a way for bitcoin to store value.
Increase it will make bitcoin more quick and easy to expand for everyone
Double whammy!!!
As long it is on everybody best interest, they should get it right.
Crypto ain't stopping cause of segwit or bitcoin.
Keep on steemit !!
*@pouchon
Source
Good thing there are nice people like you to inform the stupid people like me on what is what. Thanks for taking the time to write this and I wish you all the best in your future crypto adventures.
( ˘ ³˘)♥
P.S You kinda look like a friend I know.
Good write up and simple explanation of what this whole issue actually is. My biggest concern is the rush to get this implemented before the code can be properly vetted. The most important aspect of all this is that it works and to make sure there isn't any bugs. This is what worries me the most.
That's my concern too. But then again ever since I went through the whole DAO thing I feel this way.
No matter what happens before Aug 1st. HOLD YOUR BITCOIN!
Don't be this guy:
You make really good simplified posts about these things. There's an argument to be made that crypto crowds the platform too much - though I'm not saying it's necessarily the case - but these are worth a resteem since there are a lot of non-crypto people on the site, and I'm sure they can benefit from these.
I especially liked the video you made explaining the ongoing BTC drama. It was the simplest way I'v seen anyone explain it.
"Upvoted and resteemed."
Thank you very much for saying that man.
Great post for those new to crypto (me included).
Who on Steemit is HODL (holding on for dear life) a small (or large) Bitcoin stash? Who is worried about what's happening to BTC?
You got an upvote (not worth much sorry) & resteem
Steem on beyond the moon, we know we can go further than that. Good luck to us all.
Really good and understandable article! Thank you for writing it!
I am new in the crypto currencies' world and I really enjoy when someone put the effort to explain a tough topic in a simple way.. then you are sure, they understand what they are talking about!
Please keep writing these articles, they are really appreciated and helpful! :)
Thank you.
Thank you for summarising what is going on @exyle
So much is happening I can't even keep up
I hope Bitcoin doesn't fracture but the scary thing is, is how much power the miners have.
I hope everything is smooth going and nothing detremental happens.
Let's just buckle up and enjoy the ride
It appears that you are trying to be funny and sarcastic. But in this case... really?
You put it in your title, as well as the way you signed your message, so I'm trying to figure out if you are seriously concerned that they wrote the code and didn't check it.
....Do you believe someone just wrote the code, and no tests were done on it? No one looked at it? They're blindfolded and just hoping it works?
I don't get the funny jab in this case.
I'd like to hope and consider there is some pretty intelligent people working on Bitcoin's core at the moment.
We will probably be fine. I'd be surprised if we weren't.
It's not a funny jab. It's a real concern. It's potentially a rushed job because of the UASF deadline. I remember the DAO very well in Ethereum. That was supposed to be rock solid too. Maybe that's where my fear of these things come from.
I think its a good thing for btc! You watch it will rise like the sun after the activaton! :)
Hope everyone bought coins on the dips, prices are about to go ballistic
Out of left field, a third party has just announced they are HARD FORKING Bitcoin and immediately raising block size to 8MB on August 1st.
https://steemit.com/bitcoin/@belerophon/the-ante-has-been-raised-bitcoin-cash-announces-aug-1-hard-fork
OMFG
The end is near! Hahahahahah
Whaaaaaa?!
Thanks @exyle for sharing these details, this has cleared most of my doubts and learnt a lot. Steem On...
Well constructed post. Thanks for your opinions.... I think at least one more test of 1,750 is coming before Aug. 1st.
I think everything will be fine.. reminds me of Y2k lol
It is Y2K. YBitK.
Even better haha
good time to be alive!
I hope that everything will be right and miner accept in the market maybe will flat until november, But we need to wait and who have crypto don't sell, fear is what central bank are looking for @exyle
Let's hope everything goes smooth and BTC reaches new all time highs ;)
Thanks for this very good explanation of the current scaling debate :)
enjoy your day!
The block size for Bitcoin has been a problem for a while. It's not big enough (1MB) to fit in all the transactions that users want to make.
Therefore there is a huge backlog of transactions waiting for a block increasing the transaction times. Making the whole system slow.
(You can compare it to a train station where a train arrives every 10 minutes and has not enough wagons for all the passengers to get in. But new passengers are arriving all the time. Before you know it you have a line outside the station.)
Thanks for the info and explaining it. So is this the reason for the extreme volatility in bitcoin over the weekend and do you think we could expect more leading up to Aug 1st?
Crazy month for crypto world
Thanks for explaining this in simple words! It is still a bit much for me to completely wrap my head around, but I guess I don't need to understand it completely. We'll see how things go!
Bitcoin's soft fork also shows how strong the community of miners are. That can be a good or a bad thing in the future.Logically, I guess that miners will have to do more calculations and rounds of hashing to 'fill' up a block now. So, that could increase the transaction fees of BTC. I don't know how accurate this is, just my theory.
Thanks for the simple and clear explanation of what is supposedly happening to bitcoin that is unclear to most and still making many nervous about. I agree that segwit is probably good for bitcoin.
@exyle - This is one of the simplest explanations I have seen of the segwit2X. A complete overview in simple language for a crypto newbie like me - very helpful! Though it is comforting to know that segwit2X is accepted by over 88% miners, I agree that your caution about checking the code makes sense. The last thing we need is loopholes which facilitate hacking exposures! Thanks. Upvoted
At my end, I am doing a Photospeak series on my African memories with a photo and minimal words. Letting the pictures do the talking. I request you to visit and see if you have time. Thanks
26 Most Simple Life Changes You'll be Able to Make Today.
https://steemit.com/life/@swaticute/26-most-simple-life-changes-you-ll-be-able-to-make-today
Why do you guys upvote bullshit? The person didn't even deign to look into the affair.
"Segwit is the term used for a block size increase." Actually, it's misleading. It's called Bitcoin Unlimited that votes for a block size increase. SegWit proposes that only the transactions are stored within the block, while everything else is stored on the side-chain.
I think i have heard something like this on a crypto youtuber. The same facts indeed.
Alas! I finally found a good a newbie friendly explanation about this segwit hardfork softfork mumbo jumbo. All i can say from i learned here is that, KEEP ON HODLING ON! :)
Just stick to basic rules: fomo buy high or panic sell low.
And you will overcome any changes in BTC.
Ye l think...
that line - 'i hope they checked the code' is a classic. if history is anything to go by we can expect this to be an ever changing, ever evolving, replacing eco system going forward, a lot of value will me made and lost i'm sure.
good read! thanks for the article!
nicely understood everything thanks for explaining in simple way :)
Thanks for taking the time to share this information with us.
Good news!
Upvoted and RESTEEMED :)
I think we will up for a last minute surprise. Get ready for a final nose dive before starting to go up again.
Tnx fr sharing
I think they shud split it into btc and btu and be done with this. It will only be a short to medium term issue . Long term thats the best
Thanks for making confusing subjects more understandable for ones like myself who has never done anything like this before.