Danger: Bitcoin split in two

In short, Blockchain, the structure of cryptomonedas that protects them from cyber attacks, presents a limit of information in its network, which in its beginnings seemed unlikely to materialize as a problem. However, due to the growing popularity of Bitcoin, the timing and transaction fees have increased considerably, which has put pressure on the Bitcoin community to develop an update of its structure, which currently consists of approximately USD 40 billion (Market Cap).

But what is the problem? There are two groups, with opposing ideas, that in the coming weeks will implement their proposals independently, because there is no central authority that controls the cryptonnet. And, in case of not reaching an agreement, the Bitcoin would split in two, since two different versions of the Blockchain would be created.

What would be the consequences? Clearly a high volatility of the price of Bitcoin and an adjustment of the same (+ 150% so far this year), depending on the market and the resulting Bitcoins. No one knows the outcome, so the market is attentive and waiting to act in the face of fluctuations in the price of the so-called "Bitcoin Civil War."

The proposals of the Bitcoin update

The debate to update the structure of Bitcoin is carried out by two main "schools" or groups. The first of these are the miners, who verify the transactions and act as the base of Blockchain, using computers of high level of processing. In exchange for the maintenance they do to Blockchain, the miners receive a commission in Bitcoins, which generates a functional incentive system. As for the Blockchain upgrade, the miners propose an increase in the size limit of the blocks.

On the other hand, there is "Core", a group of developers of bug-proof software for Bitcoin. This group argues that to alleviate the Blockchain traffic, it is necessary that part of the data be managed outside the Blockchain network. This would not only reduce congestion, but also allow other projects related to the development of Bitcoin to be realized. However, such a proposal would lead to a reduction in the influence of the miners. Therefore, the software proposed by Core, called SegWit, is rejected by many miners. From the above, the possibility of implementing SegWit was negotiated and at the same time double the size of the blocks, whose proposal is known as SegWit2x. About 85% of the miners have said they are in agreement with SegWit2x, whose software would be released on July 21, 2017. However, many developers continue to reject it and indicate that its development and implementation is very fast, irresponsible and dangerous.

It should be noted that some Core sympathizers are pushing an initiative called UASF (User Activated Soft Fork) or known as Bitcoin Soft Bifurcation. This initiative, which would begin on August 1, would reject any transaction that does not adopt SegWit software. In this way, if the miners do not adopt it by that date, two versions of Bitcoin will be created and the bipartition of the criptomoneda will be generated.