Blockchain wallet, one of the most important Bitcoin wallets in the world, has announced its plans for the next Segwit2x hard fork. The division will happen after block 494,784. Blockchain has decided to follow the currency with the most accumulated difficulty.
Blockchain Wallet: Segwit2x plans
Being one of the oldest and most famous Bitcoin wallets in the market, it unveiled its plans for the Segwit2x hard fork. “Segwit2x is essentially a software upgrade that will bring improved capacity to the Bitcoin protocol,” reported news.bitcoin.com.
When there is a fork, the funds that the individuals have, could be in danger. For this reason, and as in past forks, the company will suspend the transactions for 24 hours before the fork. “To keep your funds safe while the network is in transition, we will temporarily suspend bitcoin send, request, buy, sell and exchange functionality roughly 24 hours before the time of the fork until the network stabilizes,” explains the company.
In addition to it, Blockchain has decided to follow the chain with the most accumulated difficulty. The same situation occurred with the hard fork with Bitcoin Cash, in August. The company commented on the matter: “If the minority chain has significant value, we will make that value available for customers to hold or exchange for a period of time, as we have done with Bitcoin Cash. If the minority chain is the one with 1 MB blocks, we plan to call it BT1. If the minority chain has 2MB blocks, we plan to call it BT2,” explained Blockchain.
What is it Segwit2?
The main intention of the split is to solve some of the “problems” that Bitcoin has. Bitcoin blockchain is conformed by 1 MB blocks. This creates a situation in which the blocks get full with transaction information very fast. The sender needs to pay high fees and sometimes, the transaction takes lot of time to be done.
To solve this problem, the Segwti2x hard fork will provide a blockchain with 2 MB blocks and segregated witness. Segregated witness changes the transaction format of the cryptocurrency. With Segwit, the data related to signatures is removed from the transactions. In this way, transactions reduce their size and blocks can include more information.
The 2x part of the Segwit2x name means that the block size is multiplied by two. The new blockchain will have 2 MB size, instead of 1 MB and will implement the Segregated Witness. This should lead to faster and cheaper transactions than in Bitcoin.
In the past, Bitcoin has had divisions. Bitcoin Cash split from Bitcoin Blockchain in August. Bitcoin Cash supporters claimed that 1 or 2 MB block size was not enough to solve the problem in the Bitcoin network. They have decided to implement 8 MB blocks and adjustable level of difficulty. In this way, transactions reduce their time and the fees are lower.
Bitcoin Gold, the second hard fork in 2017, is different from Bitcoin Cash. Bitcoin Gold supporters believe that the Bitcoin network is centralized in just a few mining companies. The Gold version of the cryptocurrency, does not need specialized hardware processors in order to mine Bitcoin Gold. Any GPU could be used to mine and create a real decentralized Bitcoin network.