The organizers of the bitcoin hard fork have decided to suspend the plan for the so-called SegWit2x fork.
The idea known for its strong early support by bitcoin startups and mining pools was meant to increase the block size by 2MB and to make SegWit2x blockchain the new mainstream blockchain. The main goal of the project was to considerably improve bitcoin scalability.
The plan had always been controversial as many bitcoin companies strongly opposed the idea fearing it would split the community into two branches. SegWit2x backers had to call off the fork in order to keep the community together.
CEO and co-founder of bitcoin wallet software provider BitGo, Mike Belshe wrote an e-mail announcing the recall.
Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together, he wrote. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth.
The plan basically started in May, consisting of two parts. The first part was a bitcoin update called ‘Segregated Witness’ that was successfully activated in August. With this soft fork, the data is stored differently in each block leading to improved bitcoin features. The SegWit solves blockchain size limitation problems by splitting the transaction into two segments thus, improving the transaction capacity of the blockchain. It is also compatible with outdated versions of bitcoin software. Such soft fork has already been implied on other cryptocurrencies like Greostlcoin, Litecoin, DigiByte and Vertcoin.
The second part of the plan was SegWit2x fork. The hard fork was planned to occur on November 16th but unfortunately, the SegWit2x backers couldn’t get enough support among miners and startups. The suspension announcement has been signed by all the companies that were in support of the plan back in May, including Xapo CEO Wences Casares, Bitmain co-founder Jihan Wu, Bloq CEO and co-founder Jeff Garzik, Blockchain CEO and co-founder Peter Smith and Shapeshift CEO and founder Erik Voorhees.
Although the plan couldn’t be completed entirely nevertheless, the successful half of the plan itself has much to offer. Due to SegWit soft fork ‘Lightning Network’ is possible. It is a sidechain implementation that is capable of solving a handsome number of bitcoin scalability issues.
SegWit2x leaders haven’t lost their hope, they are confident that the community will someday acknowledge the idea. Until then, the SegWit2x plan is called off.
Also Read: Cryptocurrencies – A bubble or future?