Signalling of Segwit2x on the Bitcoin Network
Bitcoin users have been very active throughout the month of July because there was the chance of Bitcoin hardforking itself according to THE BIP141 protocol which was basically a UASF (User Activated Soft fork). Basically it gave the miners two options, either activate Segwit on the bitcoin network or to hardforking it.
All this was because Bitcoin has been having Scalability issues, transaction times and charges were just increasing with time.
Today I want to tell you that above 80% of the miners have already signalled for BIP91. Now what is this BIP91 it's basically activation of Segwit2x on the network while increasing the block size to 2MB as well. It could be taken as a small victory in a lengthy war and things are yet to be set in stone.
However, there is no reason to get your hopes up just yet, as this lock-in period means nothing until things change on the network itself. Signaling intent for a solution and effectively supporting its activation are two very different things. Things can still take a very different turn from here on out.
With the lock-in secured, the Bitcoin network is now in a grace period. There will be a period of time until non-SegWit blocks are rejected by the network. This is a big change, even though the majority of the network is seeming to signal SegWit blocks. SegWit2x and USF signals are both considered “valid,” whereas pools or miners signaling Bitcoin Unlimited, for example, will see their blocks rejected. This rejection period will go into effect very soon.
So basically there might be a dip in the payments of your bitcoin mining contracts since some blocks might get rejected leading to lesser blocks found daily.
While BIP91 signals intent to support BIP141’s SegWit, it is merely based on hashpower. If mining pools and miners were to pull out suddenly, there would be nothing anyone could do to prevent it. Considering how very few economic nodes support BIP91 right now, it seems unlikely we will see a “pure” activation of Segregated Witness.
The worst case scenario would be if some percentage of miners suddenly decided to not go through Segwit in this grace period than we are bound to see a Hardforking in Bitcoin which if we take an example from Ethereum is not a good thing.
For the time being, there is no evidence to suggest that miners would suddenly turn their backs on BIP91. However, just because this small milestone has been reached does not mean everything will be smooth sailing. The miners will follow the largest chain, regardless of whether or not it supports “pure” Segregated Witness. It also means the minority supporting the BIP91 soft fork can be ignored by the rest of the network in a few weeks from now.
All I can say is that Hardforking Bitcoin would not be a good choice there would be a lot of chaos of what to do and what not to do.
Peace out.
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