SegWit and what you should know about that?
- The SegWit Activation dues to the UASF – BIP148
UASF – User activated soft fork
BIP – Bitcoin Improvement Proposal number 148
This happens when, most of the users (important: always the majority) thinks that it is time for this change. They start an improvement proposal, collect supporter and try to reach as many user as possible.
- But what do the users want exactly?
The problem in Bitcoin blockchain at the moment is quite long transaction times. Let me visualize: Bitcoin Transactions = 7 per second.
Related to ETH – 20 transactions per second
Paypal 193 transactions per second
VISA 1.667 transactions per second
So you can already guess, 7 is way too less.
- And now?
Now with this SegWit Activation the amount of transactions per second has to enlarge. Therefore the block capacities will be put up to 1MB. That means more transactions per second, lower fees and using all data more efficient.
To be more precisely SegWit2x: Instead of enlarge the capacity of 1MB they want to charge it now to 2 MB block capacity.
- So what to worry about? Sound great!
Yes, you’re right – but there is a thing you should just know about:
Blocks that does not support SegWit, will be rejected from the blockchain! That means, if the majority of miners will not have activated the SegWit Support until 1st August 2017, the Bitcoin-blockchain could divide into two sections!
Could be a problem if you remember, UASF means USER activated soft fork, but now the MINER have to change their systems now...
Good to know: Each and every single bitcoin will – if this case occurs – be copied into both blockchains. So save up your private keys, and you will be safe. Could also be possible that one of the Bitcoins will be downgraded to an ALTCOIN. Can be good – can be bad. We don’t know it yet. Be prepared and keep an eye on 1st August!