Will This Battle For The Soul Of Bitcoin Destroy It?
Will This Battle For The Soul Of Bitcoin Destroy It? As Bitcoin hit a new record high less than two weeks ago, long-time hodlers (an inside joke in crypto based on a typo in a drunken Bitcoin Talk forum message in 2013) celebrated on Twitter and Reddit with jokes about buying Lambos , and a clip from Waynes World where the main characters frolic and chant, Weve got $5,000! Weve got $5,000! On Saturday, the price surged to yet another all-time high, $6,194.88, according to Coinmarketcap.com , and the market capitalization briefly exceeded $100 billion. The reasons for the jumps are unclear, butunless there's negative news, every day, at minimum, the price is likely to rise because of new money coming into the system.Every day on Coinbase alone, about 35,000 new accounts open -- a figure that sometimes reaches 50,000 --and thousands of people in South Korea and Japan, two countries where Bitcoin has taken off, are also bringing new fiat money into the system. But the markets rosy outlook is in stark contrast to the prognosis many insiders give to Bitcoin right now: The almost nine-year-old cryptocurrency is facing its gravest test yet. Whether or not it will survive, or in what form, is anyones guess. On or around November 16 , Bitcoin, the original cryptocurrency created by a novel technology called blockchain a masterpiece of game theory, cryptography and, of all things, the age-old ledger will split into two chains, each with its own set of coins. Hodlers should be happy about suddenly owning double the number of Bitcoins except for the fact that the question of which of these will be called the true Bitcoin is, for now, up in the air and that could create turmoil in the market. Anyone willing to bet their money by selling one set of coins for another stands to take a Continue reading >>
Im Not Worried About Bitcoin Scalability, But I Am Losing Sleep Overethereum
Economist & investor, Editor in Chief at Adamant Research Im not worried about Bitcoin scalability, but I am losing sleep overEthereum With the recent surge in the Ethereum price (ETH reaching 30% of Bitcoins market cap at nearly $5 billion), I find myself reassessing a number of my conclusions, to the point where Im wondering whether it could overtake Bitcoin as the dominant cryptocurrency at some point in the future. Because of various network effects, I hold a cryptocurrency maximalist position, believing that one protocol will eventually win +80% of the market. With that as a given, I currently have a binary view on the ecosystem: either Bitcoin will win, or Ethereum. Here are my assumptions about the Ethereum (ETH) blockchain, compared to Bitcoins: Turing vulnerable, i.e. has a much larger attack surface On track towards a more centralized future Its proposed proof-of-stake mining algorithm wont be more efficient than proof-of-work Will suffer more blockchain bloat than Bitcoin, leading to more risky design paths such as sharding. Based on these assumptions, I had until recently projected a path forward where Bitcoin continues to dominate the cryptocurrency market. However, the following observations give mepause: Ethereum Enterprise Alliance is making a good impression, lending the Ethereum project credibility in the highest levels of finance. Bitcoin faces a scaling bottleneck with no clear short term solution Ethereums current on-chain tx fees are much lower than Bitcoins Its great flexibility makes it attractive to developers Several projects are making the transition to the Ethereum platform, or are creating applications for it: Brave , Storj , Shapeshift . The NY Department of Financial Services (DFS) has given Coinbase official authorization to offer ETH to Continue reading >>
Coinbase To Implement Segwit In The Next Few Weeks
Coinbase to Implement SegWit In the Next Few Weeks Join our community of 10 000 traders on Hacked.com for just $39 per month. Cryptocurrency brokerage firm Coinbase announced that it plans to release support for SegWit in the next few weeks, a move that promises to reduce transaction fees for customers and reduce congestion across the entire network. The company made the announcement on Twitter, stating that our engineering team has begun the final testing phase of SegWit for Bitcoin and that SegWit-compatible Bitcoin sends/receives will be available for customers in the next few weeks. As CCN reported , SegWit (or Segregated Witness) was activated on the Bitcoin network via a soft fork last August. By decreasing the size of transactions, SegWit lowers fees and optimizes the limited space in Bitcoin blocks. However, users only take advantage of this feature if they use SegWit-compatible wallet addresses. According to data from hardware wallet manufacturer Trezor, only about 15 percent of Bitcoin transactions currently employ SegWit, down from a high of about 18 percent in late January. This recent reduction could be linked to users taking advantage of lower transaction fees to move funds from legacy addresses to SegWit-compatible ones, but in any case it is clear that the network is not experiencing the full benefits that the scaling upgrade offers, in part because Coinbase and a few other large firms have been slow to implement it. These companies Coinbase in particular due to its ubiquity as an on-ramp into the ecosystem had been roundly criticized by many in the community because although they supported the controversial SegWit2x proposal , citing rising transaction fees, they appeared to drag their feet on implementing SegWit. This lack of urgency incurred the ire Continue reading >>
All You Need To Know About This Whole Segwit Vs. Segwit2x Thing, Explained
All You Need to Know About This Whole SegWit vs. SegWit2x Thing, Explained In the light of recent SegWit2x events, lets look at what its all about. In the light of recent SegWit2x events, lets look at what its all about. Its an updated version. The original article was published April 20, 2017 Segregated Witness, often abbreviated to SegWit, is a proposed update to the Bitcoin software, designed to fix a range of serious issues. It is developed by its long-standing team. Bitcoin Core is currently the most popular Bitcoin reference client, in use by the majority of the businesses in the industry. Originally, the update was aimed at solving transaction malleability , a well-known weak spot in Bitcoin software. Although this vector of attack is not the most damaging to the users, it has been exploited in several instances already, highlighting the need to patch it. However, SegWit offers a range of other advantages and by now the focus of attention has shifted from fixing the transaction malleability to solving the problem of Bitcoin scaling. What is SegWits solution to the Bitcoin scaling problem? SegWit increases the Bitcoins block size limit and allows the implementation of the second-layer solutions for further improvement. Current issues of Bitcoin scalability arise primarily from the insufficient block size. Consecutive blocks of transactions are what the Blockchain technology is comprised of. Blockchain, in turn, is the ledger of all transactions that have taken place in the network up until now - the lifeblood of the cryptocurrency. The problem here is that currently, blocks have a hard-coded limit of one megabyte. This is not enough to account for the hundreds of transactions that the users are trying to send every minute. Consequently, a lot of those users have Continue reading >>
What Is Segwit2x? Heres What You Need To Know.
The origins of Segwit2x go back many years now as the Bitcoin community has long debated how to scale Bitcoin to meet the increasing volume of transactions on the network. One camp, primarily comprised of the big miners, has argued for increasing the size of the blocks in the Bitcoin blockchain from 1 MB to a much larger size. Blocks are mined every ten minutes and contain all the recent transactions. With a bigger block size, more transactions can be included in a single block. Doing this would require a hard fork, a backwards incompatible protocol change, which would result in splitting the chain into two coins. The other camp has argued that since this idea does not have widespread consensus, contentiously splitting the chain would not be safe and presented a serious moral hazard. Increasing the block size too large centralizes the network and makes it impossible for most users to run their own nodes . To answer scaling, this camp developed a soft fork, a voluntary and backwards compatible protocol upgrade, titled Segregated Witness or Segwit. Segwit introduced a major bug fix for transaction malleability and unlocked a variety of new features. Notably, a new transaction type which used much less data so more transactions could fit in a single 1 MB block. This effectively turned a 1 MB block into a block theoretically as large as 4 MB. In addition, Segwit better paved the way for the upcoming Lightning Network , which creates ultra cheap and instant payments on the Bitcoin network. Segwit was deployed on the network set to activate once 95% of mining hashpower signaled it was ready. Despite Segwit being entirely voluntary and opt-in, this readiness signal was provided by developers as a courtesy so all miners would be ready to process the new transactions and would Continue reading >>
Does Ethereum Need To Implement Something Like Segwit?
Does Ethereum need to implement something like SegWit? This is a very good question! Especially because ethereum has been facing similar scaling issues with all of these ICOs (Initial coin offerings). But ethereum works differently and won't be implementing segwit. To solve it's scaling issues, it will be implementing Metropolis. It was scheduled into ethereum though as part of the road map. Segwit was never planned for when bitcoin originated. It was added later on once scaling became an issue. Ethereum had anticipated this and has a way to address it. Metropolis should be happening late 2017 early 2018. It was originally scheduled for May/June but was delayed. A YouTube Cryptocurrency News Host, Analyst and Educator #1 Cryptocurrency FaceBook Group: Log into Facebook | Facebook Continue reading >>
Coinbase Reveals Segwit Integration, Developers Working On Bitcoin Infrastructure
Coinbase Reveals SegWit Integration, Developers Working On Bitcoin Infrastructure Coinbase has revealed its plans to integrate Segregated Witness (SegWit) in short-term. Coinbase , the global cryptocurrency markets largest brokerage and Bitcoin wallet platform with more than 10 mln users, has revealed its plans to integrate Segregated Witness (SegWit) in the short-term. On social media, the Coinbase team wrote We're working on SegWit support and will have a public update soon, adding that the company is hiring more Bitcoin developers to develop the Bitcoin infrastructure of Coinbase. We are hiring senior backend engineers in SF, NY and London to work on our Bitcoin infrastructure. Importance of SegWit integration by major platforms SegWit is a transaction malleability fix and scaling solution introduced by the Bitcoin Core development team which optimizes the Bitcoin Blockchain by reducing the size of transactions. Its malleability fix also provides a better platform for second-layer solutions like Lightning that are capable of processing micropayments or transactions with substantially lower fees on the Bitcoin Blockchain network. As with any other solution introduced on the Bitcoin network, businesses and infrastructures are not automatically equipped with SegWit. Rather, businesses, wallets and exchanges like Coinbase need to allocate their developer resources to adopt and integrate the solution. Many leading wallet platforms have already integrated SegWit. Namely, major Bitcoin hardware wallets Trezor and Ledger adopted SegWit during the first few weeks since its launch, given that SegWits transaction malleability fix provides an important security improvement for hardware wallets by reducing the transaction verification time and process. When computing a SegWit si Continue reading >>
Ether - Is Trustless Btc-ltc-eth Peg Possible With Segwit? - Ethereum Stack Exchange
Is trustless BTC-LTC-ETH peg possible with Segwit? The topic is still in discussion, but I don't think segwit change the situation. Tt depends on what you mean with trustless but if you mean provably and without intermediaries, technically it can be done with many blockchains and it is actually done between Bitcoin and Ethereum; the most famous - and the only one I know being in production - is BTC Relay . Still, every solution in this moment has its own pros and cons. Continue reading >>
How Is Segwit Going To Affect The Valuation Of Bitcoin, Litecoin, Ethereum And The Market As A Whole?
In the next few weeks, Bitcoin is going to begin its transition through SegWit and (later) the hard fork to a 2 MB block size. While theres a lot of technical details to go through, this article will be focusing on another question: how will this transition affect the overall valuation of Bitcoin, Litecoin, Ethereum and the market as a whole? This article will focus on our predictions*of how the market is going to respond. We focused primarily on three cryptocurrencies: Bitcoin, Litecoin and Ethereum, largely for convienince sake. While every cryptocurrency will be affected by SegWit indirectly we believe the Ethereum (the 2nd largest cryptocurrency) and Litecoin (the most similar cryptocurrency to BTC) will be the most directly impacted. In Summary, heres how we think the market might be impacted under several conditions: Segwit/2MB Succeeds without a Chain Split Temporary valuation boost for everyone, followed by a continued crash with no structural changes and no new price floor post crash. Segwit/2MB Succeeds with a Temporary Chain Split Temporary structural market change, with Bitcoin collectively losing value and major alt-chains (Ethereum and Litecoin) gaining value. After a few months of activity, the market will return more or less back to normal with no long-term impact. Segwit/2MB Succeeds and there are Multiple Bitcoin Blockchains Permanent structural market change, with Ethereum and Litecoin gaining significant value (Ethereum likely the new highest value blockchain). Market will have a lower post-crash price floor due to investor confidence being shaken. Case #1: Segwit/2MB Succeeds without Chain Split If Bitcoin is able to successfully get through the SegWit transition, it will likely lead to a temporary bump in price. Generally, positive news about Bitc Continue reading >>
Segwit Implementation Not Fast Enough, Says Cryptoshpere
SegWit implementation not fast enough, says cryptoshpere Posted by Dowbit | Dec 28, 2017 | Bitcoin News , News Coinbase vice president, Dan Romero announced implementing SegWit is among the companys top priorities. Bitcoins price drew many new investors to the platform, increasing transaction processing times, and raising fees. The surge of new users strained technical infrastructure, leading to service delays on one of the worlds leading cryptocurrency exchanges. SegWit aims to reduce transaction lead times and lower fees for Bitcoin users. Coinbases stance, however, is not without controversy. Many in the crypto-community criticize the exchange for not implementing the update fast enough. Coinbase claims security and site performance are their main concerns. In a blog post on December 15th , Romero stated: In terms of our engineering priorities, securely storing customer funds remains our top priority.  Our next priority is to ensure that our platform remains performant during periods of peak volume. Following security and performance, we are focused on adding new features for our customers. Coinbase stores billions of dollars worth of Bitcoin for its customers and Romero cautions that any changes to the platforms infrastructure require significant planning and consideration for the security and stability of our platform. He acknowledges the push for SegWit, but remains noncommittal about when the change will occur. Many of our customers have been asking for SegWit, and were working out a way to implement this upgrade safely. Meanwhile, Blockchain.info, citing market demand, unveiled full support for the Bitcoin Cash hard fork, but delayed SegWit implementation until 2018.In 2018 we will be rolling out support for SegWit within our wallet products, its own blog pos Continue reading >>
New Bitcoin Code Will Finally Boast Full Segwit Support
New Bitcoin Code Will Finally Boast Full SegWit Support Feb 20, 2018 at 04:05 UTC|UpdatedFeb 20, 2018 at 21:30 UTC And it's not just because the bitcoin code change is focused on scaling the network (it is), or that it paves the way for a new layer for the tech that's potentially faster and cheaper (it does). Finally activated last August after months of controversy, SegWit is now spurring developers to put together a more structured, "themed" release for the software, an unusual development for the team behind the world's oldest and most valuable cryptocurrency network. Most of the time when Bitcoin Core introduces new changes to the cryptocurrency's code, the loose group of volunteer developers simply combine disparate optimizations together. But this coming code release,0.16.0, the sixteenth "major release" since bitcoin began, is a bit different. Set to launch in the coming days, the updates all revolve around SegWit- with most focusing on making it easier to send SegWit-style transactions from the software's default wallet. So, while the first software rollout of SegWit was about making sure the network understood the new rules, 0.16.0 is all about making it possible for users to take advantage of their benefits. Bitcoin Core contributor Andrew Chow told CoinDesk: "The primary change is the addition of SegWitin the wallet. This lets users to easily create SegWit addresses." Toward that goal, Chow explained that SegWit features have been added to both the command line set and the wallet user interface, so both programmers and non-programmers can use it. Chaincode Lab engineer and Bitcoin Core contributor Marco Falke noted that while it was possible to create SegWit addresses in prior wallet versions, the process was "rather hacky" and "mostly hidden." Now, though, Continue reading >>
Coinbase Is Adding Segwit Support
After months of prevarication, Coinbase has announced that it will add Segwit support to its bitcoin wallets. The much anticipated and long overdue move will go some way towards reducing transaction fees for users of Coinbase and GDAX, assuming it follows suit. Coinbase has come in for repeated criticism over the inefficient way it handles bitcoin transactions, costing itself, and ultimately its users, unnecessary fees. Due to the dominance of Coinbase, it is hoped that Segwit activation will help achieve the tipping point required for the technology become the default setting throughout the industry. Also read: How to Calculate Bitcoin Transaction Fees When Youre in a Hurry In a tweet on Monday, Coinbase issued the news their customers have been waiting months to hear: Our engineering team has begun the final testing phase of SegWit for Bitcoin on Coinbase. SegWit compatible Bitcoin sends/receives will be available for customers in the next few weeks. By any reckoning, Coinbase has taken its sweet time over introducing Segwit compatibility to its bitcoin wallets. The scaling technology helps to reduce the median size of each bitcoin transaction, thereby enabling more data to be squeezed into each block. With bitcoin transactions priced per byte, smaller transactions means lower fees. Despite Segwit being backwards compatible, and thus not the riskiest of code changes to implement, Coinbase has been dragging its heels for months. In fairness to the exchange, which has custody over billions of dollars of institutional assets, it has a duty of care to its customers not to screw things up. But as Coinbase dragged its heels over Segwit while CEO Brian Armstrong waxed lyrical over pet ethereum projects, the bitcoin community accused the company of having its priorities all Continue reading >>
Bitcoin And Ethereum Return To Green With All Eyes On Segwit
Bitcoin and Ethereum Return to Green With All Eyes on Segwit Nearly all digital currencies are back in green today as the sideways summer continues with bitcoin and ethereum making less than 1% gains this Sunday. Bitcoin, in particular, has been moving in a near straight line for quite some time, drifting around $2,500 as the currency awaits decision time regarding its scalability. Thats now just over three weeks away, with the self-imposed August the first deadline fast approaching. A deadline which determines what way bitcoin will go. Bitcoin Core developers want segwit activated and nothing else at this point. Some of them support a flag-day soft-fork called UASF which forks the chain with around 30% of miners that currently signal for segwit. Many other Bitcoin Core developers have come out against it, considering UASF as a complicated way of upgrading the protocol that could lead to an outright mess. Miners and industry have come up with a Segwit2x proposal, to be developed by Jeff Garzick and others, with the finalized client expected anytime now. The proposal firstly implements segwit in an unmodified form, but at the same time merges a hardfork increase of the protocol level limit currently set at 1MB. Its been called a compromise, facing flak from both sides. Small blockers really dont like the hardfork part while big blockers really dont like the segwit part. Some Bitcoin Core developers have come out against it with a heated exchange taking place on the mailing list whenSergio Demian Lerner proposed a segwit2x Bitcoin Improvement Proposal (BIP). So it is unlikely it will be merged in Bitcoin Core, with the decision now finally moving to miners as soon as the segwit2x client is to be released. Nearly all of the miners have already signaled support for it. The Continue reading >>
The Bitcoin Fork, Segwit And Bitcoin Unlimited Explained Simply
Last updated on July 20th, 2017 at 01:58 pm Theres been a lot of talk inthe Bitcoin community lately about stuff like a fork, segwit and Bitcoin Unlimited. Many people dont understand what all of this is about but its creating a lot of stress due to misleading or partial information that is being spread. In this post I will aim to clarify the uncertainty and give a better view of whats going on mainly for newbies and non technical people.Hopefully, once you finish reading this post you will know whats going on in the Bitcoin community these days and will be able to better prepare yourself for the different outcomes. A short disclaimer before I begin Im not a technical person and I have littletechnical background. The information I bring here today is what Ive managed to collect after weeks of research from around the web. I may sometimes oversimplify technical issues in order to easily explain them. I believe there are only a handful of people who understand this issue and its technical aspects completely. If you do find a mistake in this post I encourage you to let me know in the comment section below and I will look into it. Lets begin A fork is a technical word used by developers working on open source projects. It basically means a softwareupdate. Every time you update a program on your phone or computer you have forked from the older version. Bitcoin has introduced twonew fork concepts: 1. Hard fork A mandatory software update that conflicts with the older version. Your program wont run if you dont update it. An example can be finding a criticalbug that allows people to exploit the software therefor everyone is required to update their program in order to continue using it. If you dont update you cant use the program. Also, there is no way to reverse a hard fork o Continue reading >>
Ethereum Vs Bitcoin (with Segwit, Lightening, Mast)? : Ethtrader
Welcome to /r/EthTrader , a 100% community driven sub. Here you can discuss Ethereum news, memes, investing, trading, miscellaneous market-related subjects and other relevant technology. New to Ethereum? Read our FAQ .For the discussion of tech and application development using Ethereum, go to the official sub at /r/ethereum . Read our rules before posting. If you wish to have your subreddit or website listed in our sidebar, please review our sidebar listing policy . User flairs or tokens in the ticker are not an endorsement. Please use due diligence when choosing an investment. Welcome to /r/EthTrader | Foundation Tip Jar | Rules | Policy | Public Mod Logs | News Timeline | Education | Comments You can correct innacurate link-flair assignments by typing "[AutoMod]" along with the flair name in a top-level comment, e.g. [AutoMod] DAPP-NEWS. Requires 100 comment karma and 1-month account age. If this feature doesn't work, please message the modmail . Continue reading >>