Today in this post i am going to explain what i have understood till now about the bitcoin scaling debate thats going hot in simple form & make it easy to understand.Different solutions have been put down & there is currently civil war going between miners(who wants some control over network & transaction fees) ,developers(who wants original bitcoin core to succeed with segwit) & user ( who wants decentralization & cryptocurrency succeed)backing each other for their support.
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There is fear of bitcoin spilt.The possible solution put front are
1)Segwit2x(BIP91)
2)BIP148(UASF)
3)BIP141(Original Segwit)
- Bitcoin unlimited
But the main battle now is between Segwit2x & BIP148.All these are put down for betterment of bitcoin. Segwit has been proposed since 2 years.
1)BIP 91(Segwit 2x)
It has started signalling from yesterday & it has gain 60% haspower support(80% required to activate).Segwit 2x is the mix of segwit & increase in block size from 1 mb to 2 mb for scaling solution.Its being preferred by most miner now.I will explain segwit later.block size increase will fasten the speed of transaction & its been supported by big miners too.But what i dont like about segwit2x is bitcoin purpose is decentralization & if blocksize increase to 2mb then big miner can run node on network & it becomes harder for small miner to run node on network & big miners can have some power & control that could abuse the network.Big miners would be benefited by this.Plus to avoid bitcoin spilt,segwit 2x is solution.Its benefecial for both user & miner considering the possibilty of spilt of chain because people are fear of spilt.So its a good option considering fear of bitcoin spilt & fasten transaction.If bip91 gets enough support (80%) by end of july then segwit will activated & block size will be increased 3 months after activation. - BIP148(UASF)
If BIP91 doesnot get enough support by july end then BIP148 activation start.After the start of bip148 it will reject all blocks that do not include segwit signaling data & if bip148 is not supported by majority of miner than there could be spilt of bitcoin into two which is likely case if bip148 happens.So people fear this solution. - Segwit
Another solution is Segwit which is favoured by most bitcoin developers which keeps bitcoin more decentralized rather than giving some control to miners & fees are super low so miner doesnt like this.Segwit increases volume of transaction that fit into each block without increasing block size by creating extended blocks for signatures that will double transaction per second capacity.But it can be only temporary solution plus it requires 95% support which an average is getting around 30% so segwit 2x aka bip91 has been proposed with increase in block size.So Segwit chance is low. - Bitcoin Unlimited
BU attempts to upgrade bitcoin core to process bitcoin transaction into blocks with maximum size greater than bitcoin core.BU fork will occer in october 15.Some drawbacks of it are Most people agree that Bitcoin unlimited code is very poorly-written, untested, and would be dangerous to deploy into production & another one is bitcoin unlimited would give control of network to miner as they can increase the block size as they want & set fees.
So analyzing all the situation Segwit 2x is favourable for all aspect & most likely to happen given that 80% support threshold will cross at july end but anything can happen if support is not met & Bitcoin could spilt through blockchain spilt also but there is low chance but cannot deny & there is so much fear going on spilt .
But once all the scaling problem is over & everything will be fine (Hope so Segwit thing will adopt successfully) There will be another rise in price.
I tried to explain in simple form as much as possible by reading some technical as well as many articles.It took some time to figure everything out to put out in simple form.So, If i have any misconception or i have written any mistake your comment will be welcomed.!