SW with 2MB blocks (SegWit2MB)

SW with 2MB blocks (SegWit2MB)

The Solution to the Block Size War - or Submission of Bitcoin to Politics?

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One of the more reputable bitcoin developers, Sergio Lerner from Argentina, suggested an unique compromise to bitcoins scaling. In technical terms, this is a 2MB hardfork with Segregated Witness. Some were excited while others did not show much enthusiasm to this idea.

This crypto currency’s block size war rages and can only end due to sheer tiredness. Alternative coins rallied which indicates the long years of arguments about scaling Bitcoin have reached a point. The results are quite clear now.

Mr. Lerner bared his proposal in the mailing list of Bitcoin through this overture: This proposal’s main objective is to bring back together the Bitcoin community thus avoiding a crypto currency split.  SegWit-2MB may not turn out as most viable technical solution to address technical limitations o this virtual currency. This is not a new solution but more of least common denominator.

The proposal is quite simple, to implement both main scaling solutions:

SegWit2MB merges SegWit as today in Bitcoin 0.14+ with 2MB block size hard-fork activated only if SegWit activates (95 percent of miners) but at a fixed date in the future.”

This developers solution can be described as minimalistic. It may be written, tested and checked within a brief period. SegWit can come soon while the hardfork is expected at the end of 2017. Miners, developers and other industry stakeholders must collaborate to bring the crypto currency forward, increase its value and avert the further increase of transaction fees. These will put cases out of business and cause significant positive social effects. A solid Bitcoin community will be stronger, according to Lerner.

Reactions of other Developers

Some comments were not really heartening just like what Core developer Matt Corallo said. Lerner allegedly disregarded the research done on hardforks and that the basis of his suggestion was compromise for the sake of compromise. Lerner must proceed from hardfork activation to new restrictions for non-SegWit block space as well as upgrading of SegWit economic mechanism. Likewise, Mr. Corallo observes many risks in the pitch of Lerner, to which the developer from Argentina cannot offer any technical solutions at all.

There was similar feedback such as that of Blockstream co-founder Jorge Timon who articulated that additional consensus directives will not make SegWit2MB less contentious. The doctrine of Lerner does not help getting out of the impasse. Meanwhile, other experts called SegWit2MB the “most terrible of both worlds”.

Fixing the Crack

ShapeShift CEO and founder Erik Vorhees on the other hand favored the Lerner proposition. He said the SegWit2MB should be taken into consideration. His main concern is the Bitcoin community’s unity since consumers and the business sector needs this technology. The Blockchain or Bitcoin for that matter cannot be forced on people but it is more of a respite from financial opportunists worldwide.

Moreover, the ill-fated situation is seen as diminishing usefulness of the platform especially since transactions are becoming costly and less consistent. User-experience in Bitcoin transactions seem to get compared to 2015 and before. The increasing price of the virtual currency does not mean financial stability as pricing comes after value. Bitcoin is a remarkable machine as well as social venture. According to Vorhees, Lerner’s position may not be technically excellent but it has the capacity to unify.

Block Size War

The war on Block size increase can cause BTC market price to plunge. This claim was made by Chandler Guo, angel investor in BTC and ETH currencies. This rivalry can be positive for Bitcoin’s value. However, the virtual currency cannot be controlled which the public likes. Only two years ago, people wanted the block size to go up because it was very cheap at $200. They clamored for a $500 increase bur core developers could not be controlled. Thus, they were contented in using 1 MB and not the price is $700.

BTU advocated a block size upgrade although BTC users were contented with the existing price even as size was fixed at 1 MB. It cannot be predicted if the size will grow to 2 or 4 MB which contributes to a possible war. Miners do not like a war because they cannot mine. It will take longer or them to make money which could be one year or more. Everyone will lose money if prices collapse.

On the other hand, mining pools do not care considering transaction fees are just right for them which constitute five percent of the reward. In fact, it seems Bitcoin shareholders, investors and users want the BTC price to continue rising. Mining hardware manufacturers want the price to reach $10, 000 since this will allow them to sell additional equipment.

At present, the community is divided into two forces and it has been for several years. Notwithstanding this situation, developers like Mr. Guo tells opposing groups to resolve the problem in Block size to forge an agreement rather than continue fighting. Prolonged clashes can bring about two chains or two coins with separate names. A better compromise is to have a 1.2 MB size to avoid all these troubles.

Or, it can go up to 1.7 MB without compelling everyone to upgrade software or hardfork. This will be a win-win situation or the Bitcoin currency. It is no longer necessary to wait because Segregate Witness has been encrypted and tested. This approach is ready for execution. Last year, some developers signed an agreement for scaling the BTC. By and large, the discord may be resolved. It will be safe to assume Bitcoin is not politicized after all.

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This is Lutpin, and I edit, review and publish articles for CryptoNews. Sometimes, I also write them myself. I started being interested in bitcoin and cryptocurrencies as far back as late 2012/early 2013. A year later I dropped out of the scene due to losing interest. Since 2015 I'm back in and involved deeper than ever. Besides writing articles, I'm a huge fan of gambling, preferrably combined with cryptocurrencies. Another big interest of mine are physical bitcoins, I know everything about them. Besides Crypto-News and Crypto-Games, you can find me mainly on bitcointalk.org

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