The next BIG Bitcoin event in the Bitcoin Ecosystem is all about scaling, a discussion that started a couple of years ago. As Bitcoin’s value and adoption continues to grow, it is clear that the bottle neck in confirming transactions on the blockchain needs to be resolved. This brings us to the current debate that is raging within the Bitcoin Community.
Bitcoin Core are pushing for the adoption of Segregated Witness (SegWit) and then there is Bitcoin Unlimited on the other side. This has been put to a vote by the miners who are now in the process of signalling their preference. The biggest concern for the community is that a poorly implemented development would result in a hard fork, thus creating two Bitcoins, a move that should be avoided.
What is Segretated Witness?
SegWit is a neat invention that the bitcoin core community put a lot of effort in because it provides positive fundamental changes to the bitcoin platform. It takes non-critical data out of the transaction to reduce the size (increasing throughput) along with other benefits. “Segregated witness (segwit) is a soft fork that, if activated, will allow transaction-producing software to separate (segregate) transaction signatures (witnesses) from the part of the data in a transaction that is covered by the txid.” Read the full article here
What is Bitcoin Unlimited?
Bitcoin’s code is public for anyone to read or copy (‘fork’) for their own project. As such, it’s possible for different versions of bitcoin to run side by side on the network. Bitcoin Unlimited differs from Bitcoin Core in that the block size parameter is not hard-coded – nodes and miners flag support for the size that they want. Then, it relies on an idea called ’emergent consensus’. “An emergent consensus will thus arise based on free-market economics as the nodes/miners converge on consensus focal points, creating in the process a living, breathing entity that responds to changing real-world conditions in a free and decentralized manner,” the website reads. In the case of the block size, the idea is that via the free market, miners will come to agreement on a block size. Though, users can ‘vote’ on other parameters as well. Read the full article here
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