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Ready For Another Bitcoin Segwit 2x Hard Fork?

23 Oct 2017

Preparing For a 2nd Bitcoin Segwit 2x Hard Fork?


For those of you who don’t know about the previous Bitcoin hard forks and its challenges, let's provide a small intro on this discussion:

Bitcoin Cash [BCH] will be a fork of the original Bitcoin blockchain with some changes and additional features here and there. Mind you, these changes might look small and insignificant, but in reality, these small things have been the reason for a massive debate on Bitcoin scaling for many years. 

1. New Name – With a new name to Bitcoin’s offspring, i.e. Bitcoin Cash, it seems to appeal to a stratum of users who believe that Bitcoin should be a cash-like thing that’s easy to exchange with minimal or no fees. Suffixing ‘Cash’ to Bitcoin encourages this usage.

2. Block Size Limit Increase – A certain group of users, miners, and developers have always advocated for a bigger block size in BTC. Now with Bitcoin Cash, they will start off with an immediate increase of the block size limit to 8MB. 

3. Replay and Wipeout Protection – If and when BCH splits, they have a well thought out replay and wipeout protection plan for both chains. With this, everyone involved will have minimum disruptions and both the chains can peacefully coexistence from there. 

4. New Transaction Type – As part of the replay protection technology, Bitcoin Cash has introduced a new transaction type with additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem. 

(Source-https://www.bitcoincash.org/) Is Anyone Supporting BCH? You may think that no one would support this new kid in the crypto market. But that’s not true! BCH is getting enough support from users, miners, and developers. And in reality, to start with, you only need support from these key players. Moreover, it wouldn’t be fair to dismiss a currency which has not yet been born and has yet to be traded in the market. For your information, CoinMarketCap lists the futures options of Bitcoin Cash. 

bitcoin-gold



NOW WE NEED TO GET READY FOR ANOTHER HARD FORK, The Bitcoin Gold hard fork of the Bitcoin blockchain is expected to take place at block 491,407, which will likely occur on October 25. A new cryptocurrency, Bitcoin Gold, is the brainchild of Jack Liao and is launching as a hard fork of Bitcoin, the new cryptocurrency called Bitcoin Gold (BTG) will work with existing private keys holding a Bitcoin balance at that time will be credited with the same amount of Bitcoin Gold on November 1st, similar to how they received Bitcoin Cash at the beginning of August. A wallet for Bitcoin Gold may not be available in time, however, which could cause a delay of up to a few weeks before holders will be able to use the new coins. 


Note: Doubling of coins does not mean doubling of value, because after a hard fork, the value of both versions of coins are determined based on user sentiments and demand/supply in the market.


What does it mean for you? Bitcoin Gold will only affect you if you own Bitcoin when they pick the hard fork block, that is, around October 25. You will receive the exact amount of Bitcoin Gold as Bitcoin you hold at that block. They are planning strong replay protection, so you probably won’t have to worry about replay attacks. However, you will most likely need to download a wallet or construct transactions manually to be able to move your Bitcoin Gold tokens. Basically, if Bitcoin Gold isn’t worth very much (less than 0.0001 BTC or so), it’s probably not worth doing anything. If it’s actually worth something (say 0.01 BTC or higher), there will be tools that wallet developers will most likely write so you can access your Bitcoin Gold. If you have your Bitcoins on an exchange, the exchange will likely credit you with your Bitcoin Gold eventually. This will especially be true if BTG has value above 0.01 BTC. Generally, it’s better to control your own private keys as that gives you the most flexibility. That said, the fiduciary duty any exchange or merchant has when they take possession of your Bitcoin means they probably have to give you the Bitcoin Gold due to you.

Conclusion

Bitcoin Gold is another hard fork that will bring some changes to the ecosystem. If you’re a holder, there isn’t that much to fear here, and there may be some free money in it for you! If you’re a developer for any wallet or exchange, that’s another story.

Digital Coin Trade®™ will support any new development from the bitcoin blockchain proprietary if our partners are in support of the new fork.