Bitcoin backers rejoiced as the group found a new means to improve usage and allow to grow, causing a rise in the value of the virtual currency and taking it back to the record highs.
The community which has been bent on digging out ways to make bitcoin more manageable gathered to support the upgrade of code called SegWit2x – with hopes to skyrocket the capacity of the network transaction. That triggered a movement on Thursday in the price of bitcoin against the dollar which had declined from a high level in June as speculations were on the top side about its future.
Bitcoin community and the new approach
The head of bitcoin-shopping startup purse, Andrew Lee said that they are excited to get over the deadlock. And the development creates access to the long-awaited innovations.
Likewise, bitcoin lovers in Hong Kong, Tokyo, San Francisco and New York gathered at office and bars to throw unprepared parties. However, others went for the price rally and took to social media to voice their happiness for the movement.
Underlying cause of the lingered impasse
The deadlock came from the limit placed on the block basis of the network in the early days of bitcoin in a bid to prevent the activities of hackers. The processing fees and transaction times rose to a high level as the cryptocurrency gained popularity throughout the past nine years it has come to be. Consequently, the community found it hard to process payments at a comparable efficiency with other services such as Visa Inc. bitcoin miners and developers were bent on the search for the possible solution and hot to upgrade the software.
According to a website tracking, Coin Dance, over 93 percent of the miners who work as the brain of the cryptocurrency sticked to the BIP91 which was necessary in putting in place the new SegWit2x. bitcoin miners are independent bodies that analyze, approve and process bitcoin transactions by finding solutions to complex computing tasks. In return, they are rewarded by payments and creation of bitcoins.
SegWit2x is a compromise between two groups
Two major competing camps pressed for two different motions, but the miners opted to adopt the SegWit as well step up the block size to two MB. The first group advocates an increase in block size while the second group formally known as Core advocates moving some information outside the basic network – SegWit. However, the miners resisted using such method totally, instead compromised it with the idea of the other group which means SegWit2x.
The upgrade is not the end. The BIP91 lock-in will give two days as the grace period for miners to get set for the software activation. After which about two weeks will be spent for SegWit to be adopted fully. However, developers still caution the risk of hackers tampering the process.
With the stabilization of prices, the majority of the community members doubts if there will be any harder scenario that the just concluded one. This is coming with the speculation s that the community will face a new challenge in about three months when some of the biggest miners will set up the movement to adopt the second version of the proposal.