SEGWIT2X Simplified. A Brief Guide Written in Plain English.
We’ve been seeing endless questions regarding SEGWIT2X: What is it? What will it do? When will it happen? Most of the articles we’ve found which explain it have been lengthy and somewhat confusing, especially for those who are less technically inclined. We decided to write a brief guide in plain English to help those people who aren’t in the know yet.
Simply put, SEGWIT2X will improve the speed of Bitcoin transactions while reducing costs by increasing blocksize to 2MB (from a current blocksize of 1MB)
If you use Bitcoin, I’m sure you’re aware that transactions aren’t instant. Once your transaction has started, it is added to a queue with other transactions which are waiting to be inserted into a block. This queue exists because of the current 1MB blockstorage limit.
The issues people are facing now are higher fees associated with “queue jumping”, which makes executing a speedy transaction extremely expensive. A user who wishes to bypass the queue can do so by paying a higher fee, but overtime this has caused the standard fee to increase.
It’s been decided that the best solution to this problem would be increasing the size of the blocks from 1MB to 2MB which would effectively halve the transaction and wait times while allowing twice the amount of transactions to be inserted within a block.
This change will be fully supported and executed by a consortium (huge influencers in the Bitcoin Network who are responsible for about 85% of the mining and over 20 million wallets) who have launched a new version of the Bitcoin Protocol which they will operate once the fork arrives.
So, what’s going to happen?
The moment that block 494,784 is processed, Bitcoin will “fork”, which will spit it across 2 separate networks. Estimates put this happening around November 16, 2017.
Generally when a coin forks, it is renamed, given new branding, a fresh vision and target market… all the while existing peacefully with the forked coin at the same time.
Unfortunately (or fortunately depending on where you stand) that isn’t the case in this fork. Both Bitcoin networks are staking claim to the title “Original Bitcoin” and many think this could mean the end for one of the networks since operating and trading 2 different “Bitcoins” will be quite confusing for your everyday user.
So if there can only be one… Who keeps the name “Bitcoin”?
Bitcoin has a community behind it that strongly supports the decentralized nature of Bitcoin. The fact that a group of companies are the ones who made the decision to initiate the fork concerns those who wish to preserve decentralization. At the end of the day, it’s the users who will ultimately decide which will be the ‘Original Bitcoin’ Network. The major exchanges have already publicly declared that they will list the coin with generates the highest hashpower (is the most used). Once the big exchanges make their choice, the smaller exchanges will inevitably follow suit and a unanimous agreement will be made.
At this point, all we can do is wait and see what happens. So sit back, grab yourself some popcorn and wait for block 494,784!