Crypto Tips News: Segwit2X Cancelled & Ethereum's Parity Blunder

in #bitcoin4 years ago (edited)

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Well, I can’t not talk about everything that’s been happening with Bitcoin AND Ethereum this past week.
For those of you who have successfully maintained a state of blissful ignorance to all that’s been happening, here’s a quick recap:

Bitcoin was due for it’s third hardfork this year but due to the utter lack of community support, it was called off.
This caused all sorts of price movement which I’ll get into later on in this video.
Ethereum experienced another unfortunate event that involved the Parity wallet which resulted in the freezing of $150 million worth of ether.

Let’s take a better look at the affect that Segwit2X has been having with Bitcoin and Bitcoin Cash.

You may remember that the price of Bitcoin was steadily rising thanks to the anticipation of the SegWit2X hard fork. Perhaps this was due to investors wanting to get in before the fork to gain access to the new coins.
But as the rumor mill turns, it seems that the Segwit2X hard fork has been called off.

News of this update was followed by a drop in the price of Bitcoin and a sharp increase in price for Bitcoin Cash. On the surface it looks like a pile of investors ran from one coin to the other, but a more likely scenario could be that those who invested in BTC just to gain access to the new coins backed out.

Looking at what was happening with Bitcoin Cash the past couple days, the volume speaks volumes. Taking a look at the markets for Bitcoin Cash, South Korea's exchange, Bithumb, is on top in regards to volume. This suggests that the move to Bitcoin Cash isn’t necessarily wide spread.

But there’s no denying how Bitcoin Cash is different than the legacy chain of BTC. It offers faster speeds and cheaper transactions and replay protection. If you’re not sure why replay protection is a big deal, check out my past video that goes over SegWit2X, it explains what replay protection is and why you should care about it if you’re invested in Bitcoin.

Despite all of the news that SegWit has been called off, there are still whispers that certain mining pools will proceed with the hard fork regardless, to that I say, we’ll just have to wait and see.

Ethereum has had its fair share of, let’s call them, “learning experiences”, and the newest one on this list happened this week. Let’s take a look at what happened, who was affected and the steps being taken to move forward.

It’s almost comical what happened with Ethereum recently with the Parity wallet blunder. Almost comical... except for the fact that it’s affected a pretty large amount of money and quite a few people too.

Here’s a watered down version of what happened, in a nutshell, one lucky individual who is new to Ethereum and learning the ins and outs of its code made the fateful mistake of unintentionally finding a bug having to do with the library for the Parity wallet. The discovery happened after they unintentionally changed the library contract into a multi-sig wallet. Once realizing what had happened they tried to delete the code. Unfortunately this affected all Parity multi-sig wallets and resulted in the freezing of around $150 million worth of Ether.

Multi-sig wallets are wallets that require multiple signatures before funds can be moved out of them. Most often it is companies who have raised money through ICOs who use these types of wallets to ensure that their funds are handled honestly. Also individuals who are interested in an additional layer of security will use multi-sig wallets. These are the ones who have been effected by this hack, and who’s funds are effectively frozen.

Moving forward it seems that to be able to access these funds again will require a dreaded hard fork.

Ethereum has a bit of a history with hard forks.

Many will remember the famous DAO attack and how the Ethereum Network decided to hard fork. The situation was similar in that the hacker found a loophole in the code that allowed them to collect a very large sum of Ether. The hard fork essentially rolled back the blockchain and disregarded its immutability in order to get back the lost funds.

Hopefully, for the sake of the Ethereum community, a solution can be found that won’t require a hard fork.

Additional Reading/Sources:

Segwit and Segwit2X explained

Rumors of Segwit2X will still occur

Price movements of BTC and BTH

Hacked Article on BTC vs BTH

Breakdown of Parity hack

In-depth look at Parity hack

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Heidi, you have a distinct gift for taking information and translating that knowledge into easily understandable conversation.
THANK YOU!
Had a blast with you and Nessie and the gang last week, looking forward to next year!
Craiggles 🤗

Well thank you for the kind words :)
SteemFest² was a success on all fronts, except for the crepes and coffee shops haha
One day you'll have to tell the story of the night with the vampires 😜 "Adventures with Craiggles"

Ja stimmt

Your right, @scan0017!
Translation is what helps those like me that are new figure this out!
~bluerocktalk🖖

It's like a digital soap opera, with almost-pregnancies, last minute back-outs, crazy million-dollar mistakes, more forks than can fit in a dishwasher, and a crazy cast of cartoonish characters. ...If nothing else, crypto has been entertaining lately!

I am a newbie, and you explained it perfectly @mrosenquist. I thought it was just me, not knowing much.
~bluerocktalk🖖

I know I'm finally getting the hang of understanding crypto when I watch your video from start to finish and not only understand it but agree with @mrosenquist and it's like a soap opera (or train wreck) awful but you just can't help but sucked into the craziness of it all.

great update

Moving forward it seems that to be able to access these funds again will require a dreaded hard fork.

It sounds like TPTB have decided against supporting such a move. Not sure why the DAO qualified but this one doesn't - could be the value as % of market cap is a lot different now.

Cryptography is hard.

Perhaps they've decided to learn from past mistakes...
Ugh, life.

Great update @heiditravels. Thank you for sharing it. Keep up the good work. BTW, great to see you at SteemFest. You are featured in my latest video and blog with pictures. Cheers!

Hi @terrybrock
Ran across you by reading @heiditravels blog, which i also just found. I've been working with @stan and having a ball. I am adding you to my follow group now as I do my best to wrap the crypt world around the "out of the box" mind I already have!
~bluerocktalk🖖

Thank you, @bluerocktalk. Yes, we saw @heiditravels at SteemFest 2 in Lisbon the other day. She is a delightful and wise woman. Gina, my partner, and I were very impressed.

So you've been working with @stan? I have not met him but admire him and his work greatly. I think he has done a lot of good in his work with Bitshares and with the new Hero coin. I applaud his efforts and his results.

Thank you for the follow. If I can be of help to you, please let me know. All the best to you and thank you for your support.

Terry

You would think that if community support was not behind Segwit2x yet that there is no way another hard forked coin would take over to me this is the stupidest of ideology going on right now between BTC and BCH. THERE IS LACK OF SUPPORT PEOPLE! lol

About 20% - 30% max miners where supportive of the hard fork and we are clearly seeing that now. We also see how clearly broken BCH is mining algorithm wise and how miners and big investors are just flip flopping right now grabbing up massive amounts of $. The only thing BCH managed to do was create a broken system that is being taken advantage of from greedy investors and caused uncertainty and distrust which has make nearly 30 billion dollars leave the crypto market cap in the last 2 days. Its seriously disappointing and those still backing BCH should seriously step back and rethink.

ETH Parity I think is on them and no hard fork should take place. It sucks yeah but thats the risk you run holding your coins on exchanges etc. Its why I always recommend holding your own keys and wallets and not some company.

Its pure madness going on right now but clearly shows why cryptos can very well fail as its still built my humans and controls by humans and yeah we break stuff all the time ;D

The ETH Parity hack affected multi-sig wallets, not exchanges (just FYI ;) )
Totally agree, code is amazing, it's the humans that mess it up!

lol yeah Humans are always the problem :P

I couldn't have said that better myself @bitcoinflood. Which of course has me following you now.
~bluerocktalk🖖

Crypto is run all by greed whether it's whales pumping up prices or this bch situation happening.

Maybe BCH isn't it, but something needs to be done with these BTC transaction fees and time-consuming confirmations. The Etherum craziness did seem strangely similar to the Etherum Classic debate. Sounds like history is repeating itself on that one. Maybe it's the fear of missing out, but I don't exactly want to dump BCH or BTC.

¡Nice, there is another proposal for scalability, with hardware, it would be cool if it can get more attention! link

Will ETH come back up to, say 0.06 ETH/BTC?

Thanks for making cryptos fun and attractive.
-Demystified by CryptoTips

BCH was very much a planned, manipulated pump, by a relatively small number of certain individuals. Those they believe that they should decide what is good for BTC, and only them! Most people that follow BTC, will know the names.

Good video!

Planned pump and dump. Whoever bought in yesterday at the high expecting the market cap to get close to btx got reked

Great article. Have upvoted you, please upvote me.

Good post, I am a photographer, it passes for my blog and sees my content, I hope that it should be of your taste, you have my vote :D greetings

I love how exciting the crypto world is right now. It certainty is not boring like "normal" investment opportunities. The Parity debacle, truth is stranger then fiction!

It’s still the Wild Wild West out there right now. I’m mostly in Dash right now. Bcash is a centralized scam coin manipulated by Roger Ver and his minions.

Nice informative post...I have heard about another hard fork Bitcoin Silver..Is it true???

++++++++++++++++++++++++++++++++++++++

I hope that they will find a way to get the ether back.

thanks for very clearly describe the present cryptocurrency market scenario. a worth reading indeed.

Any suggestion? Where should we put our money on now? I'm not surprise there will be another new crypto currency exist called the Galaxycoin haa

Nice video again @heiditravels, thanks for sharing!
Greeting from Berlin! Jonas @future24

Trying to understand cryptocurrency, thanks for the nice summary of last week's events!

A nice recap. Do you think we will see BTC retest $5k? Perhaps lower?

Expecting bch people to start taking their profits then $ will start going to either btc or into alts i think we should see $5k price max.

Is that Nazaré beach?

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Hi ☺️ I don’t really understand much about bitcoins. Hehe. I’m wondering will the rate increase soon? 😁

very nice explanation I begin to understand little bit beter the crypto world.
Thanks.

Thank you for posting lots of content and effort in all the posts you do on steemit 👌🏼look forward to the next post ....... Keep up the good work from @devosdevosi

Wonderful post

@heiditravels Experts think bitcoin's crash and bitcoin cash's rise are related to the same thing Segwit2X. Segwit2X was designed to increase the size of the blocks underpinning the bitcoin blockchain network to enable it to process more transactions more quickly.When you look at the trends, it does look like many Segwit2X supporters have switched to bitcoin cash. BCH’s trading volume also recently surpassed that of BTC.

Most of the trading volume is from korea

Maybe, but it also might be short term excitement. Time always tells.

Any how BTC is the grandfather of crypto currency..he know how to play the game.. Let see @heiditravels

This is one thing I am confused about. Was Segwit2X a Fork for a coin with a new name Similar to BitcoinCash or was it a scheduled BTC upgrade. If It was a scheduled BTC upgrade then I am not sure why people are calling it a Fork ??

Wow, very nicely written synopsis. I'm a new crypto writer myself, but I think my writing style is probably a bit too jumbled and disorganized in comparison to this.

stimmt schön geschrieben!

Segwit 2X Cancelled was really surprised! It is noteworthy what kind of movement will be in the future!

Thanks very effective information again thanks

Great presentation. Any reason it's a few days behind the market? Is that to be able to digest/process the info better, or maybe because of personal schedules, etc.?

I prefer to wait until the dust settles a bit so I don't perpetuate unnecessary drama :)

Great post keep up the good work also if you want you can follow me and comment on my post so that you can receive more up votes from me.

Its probably old news to you, but i have a short video you can watch where @stan describes segwit2x to me.

https://steemit.com/bitcoin/@bluerocktalk/usdusdusd-stan-larimer-explains-segwit2x-usdusdusd

I wanted to recognize I have found you too. cool! 😀
~bluerocktalk🖖

Thanks for this valuable information.

Ja es geht Immer im Turbo auf und runter !

Thanks for the info

I feel like BTC just needs an upgrade. Perhaps by implementing "Lightening".

It really BTC is what people want.

Forks will just loose value eventually If there are too many of them.

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Очень жаль, что такие негативные новости.

It is unfortunate that such negative news.
But we hope that it will be possible to rectify the situation and to unfreeze the funds.
Thank you very much. Excellent post.

Bitcoin cash planned pump and dump however i don't think we will it go under $1k. Expect people to start taking profits and then $ going either back into btc or alts. Btc is here to stay and i don't see anything taking it over. Eth is the closest bet to taking over btc but no other coin comes even close.

That's the best summary of this I've yet read- I'll be pointing my non-crypto savvy friends this way!

Thanks for the info

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