Hard Fork and Controversy Ahead With Digital Currency Group’s Segwit2Mb

Bitcoin history was made yesterday when Digital Currency Group (DCG) announced the new plans for the Bitcoin Scaling Agreement. According to the announcement, the updates will be in line with the original Segwit2Mb proposal. With Bitcoin currently sitting around $2430, steadily inching its way closer to $3,000, the stakes have never been higher.

The components of the new Bitcoin Scaling Agreement:

  • Activate Segregated Witness at an 80% threshold, signaling at bit 4
  • Activate a 2 MB hard fork within six months

According to the DCG, “56 companies” have signed on to the agreement and goes on to state:

“The group of signed companies represents a critical mass of the bitcoin ecosystem.”

Digital Currency Group, however, has an ownership stake in 27 out of these 56 signers:

BitFlyer, BitPay, BitPesa, BitOasis, Bitso, Bitwala, Bloq, BTCC, Circle, Civic, Coinbase, Coins, Filament,
Genesis Global Trading, Korbit, Luno, MONI, Netki, Purse, Safello, ShapeShift, surBTC, Unocoin, Veem, Xapo, Yours, Abra

This agreement, being called the ‘Barry Silbert Scaling Proposal’, was made in a private meeting held at the Consensus 2017 conference in New York Sunday. It is believed the attendees were a group of individuals who represent Bitcoin enterprises and miners, but an official statement has yet to release the names.

It seems the controversy and long-heated debate over the Bitcoin scaling debate is far from over. The Bitcoin community is already in an uproar.

One Bitcoin community member argued that Bitcoin Core developers should have been involved:

It seems Bitcoin’s future may, or may not, be left up to the “critical mass of the bitcoin ecosystem”.