What to know about SegWit2x

Scaling, scaling, scaling.

Where do we start.

What we have learned is that emergent consensus isn't always pretty. When in the face of apparently virtuous resolutions, a network can come together swiftly and upgrade in unison. However, there is not always a “one-right-way” to do things.

In fact, entire communities will argue that there are multiple right ways to do things. In a decentralized network of participating entities, there can exist multiple right ways to accomplish goals. This is natural, and can be observed in family environments.

When it comes to scaling Bitcoin (enabling higher quality/quantity transactions) there are presently a handful of major options. We can increase the block size – more transactions per block / 10 minutes. We also have the option to deploy Segmented Witness (SegWit), which is a restructuring of Bitcoin transactions. Another possible solution is, of course, a compromise.

As we have witnessed, BIP148 created a lot of noise in this space, with many full nodes running software that will only accept SegWit compatible transactions. This is one way to institute emergent consensus. Another way is to create an altcoin, or a fork of the Bitcoin blockchain. This occurs when a community splits away from the Bitcoin network by running software that has a different rule set, or consensus mechanism. The most recent fork is known as Bitcoin Cash ($BCH)*.

Now to the compromise option. A group of influential Bitcoin companies came together behind private doors to sign what is known as the New York Agreement. https://bitcoinmagazine.com/articles/miners-are-signaling-support-new-york-agreement-heres-what-means/ What this means is that the miners have come together and “agree” to both implement SegWit and increase the block size. This fork will be known as BTC1, or SegWit2x.

This does not cover everything; there are advantages and disadvantages to each occurrence, and frankly, those are to be decided upon individually. Do your research, and support what you see fit.

I hope this has been a helpful guide to the scaling drama recently observed in the Bitcoin community.

*It is controversially known as $BCC as well, however this acronym already existed in the cryptocurrency space as https://bitconnect.com/.