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Segwit BitCoin

segwit

The latest news in cryptocurrency world stirred up the public and pleased all admirers of an original chain of BitCoin. As it became clear from several authoritative sources just yesterday, team of developers who worked on future fork, under the name Segwit2X, issued the statement in which specified that at the moment, they completely stop all development and now hardfork that many investors and traders waited and that was appointed on November 16th, will not take place.

BitCoin and its course already reacted to news with active flash. Many investors became in purchase in relation to the main coin because of that the course that conquered all new peaks, now at all end-to-end came nearer to a mark of 8000 dollars for one coin. However, speculators also did not sleep and managed to record the profit so now you can get about 6300 dollars for one BTC.

After this news and considering that earlier we did not write about this hardfork, we decided to carry out short excursus to the history about division of Bitcoin and whan potentially it could turn for all holders of crypt and cryptocommunity in general.

If to get at the root, the main problem and reason of why original BitCoin could be divided into two competing networks is the block size. All the matter is that all transactions which happen in a network, do not vanish anywhere, but register in strictly set order, forming a chain of sequences which can be traced easily. Actually, all Blokchain technology is translated - "a chain of blocks". In turn, all transactions which make in BitCoin, register in a block which size is established in number of 1 Mb. Such decision was not given spontaneously, it was dictated by security measures which Satoshi Nakamoto as a response to frequent DDoS-attacks that time. Before that, the size of a block was not limited, though formally it could contain in itself information up to 32 Mb, however this decision could stabilize the network, and was an excellent short-term decision. Before BitCoin did not become popular.

With arrival to cryptocurrency all new investors and, as a result, increase in number of transactions (more and more people started sending each other bitcoins), BitCoin started having problems with a capacity. All the matter is that transactions could not fit in the size of a block and, as a result, stiffened in unconfirmed that increased amount of time for receiving currency. In turn, many holders of BitCoin began to increase the size of a commission so were added big transfer commissions to slow transfers.

And Segwit2X developers tried to fix this problem suggesting to increase the block size to 2 Mb. It was opposed by developers of original BitCoin Core, and also by some eminent persons, such as Litecoin founder, Charlie Li who organized a small flashmob in Twitter, having added to nickname an abbreviation "NO2X". As opponents of Segwit2X claimed, such decision could lead to that BitCoin will lose the key feature and main advantage as currency - full decentralization and absence of uniform center of issue. Potentially, such decision could lead to that the most part of BitCoin network would be controlled by the largest mining-companies, and it meant that BitCoin would become centralized currency subordinated only to a narrow circle of people, but not community of users as it is now.

Therefore cancellation of Segwit2X became pleasant news to many people, after all even if fork took place, it could not foretell anything good neither for BitCoin, nor for a new coin, for investors and all cryptocommunity.

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