And what if the Hard Fork happened? Hard what…? Getting informed on an unlikely event.
Article by inbitcoin
Anyone who gets close to the bitcoin world discovers new terms and new meanings: wallet, blockchain, miners….these are the first terms that one remembers when starting to use bitcoin, but then one looks even more closely and starts to read more: hard fork, Bitcoin Unlimited and Segwit (Segregated Witness). Don’t sweat. If you are appreciating bitcoin only as a currency it is unlikely that you know what we are talking about. Instead, if you have begun to discern the beauty of this technology you might have already read these terms or will, shortly. In these last few days there is a lot of talk about a specific element: the hard fork. Today we would like you to understand why it’s being talked about and what it exactly is (you will shortly discover the solid truths of Segwit and the more confused ones of Bitcoin unlimited)
As we all know bitcoin is based on a master book (a transaction register) that is called the Blockchain, which is secured by miners. In truth, all this technology is a protocol (as is http for the internet) and is based on software implementations.
The implementations are normal, because each open source software is constantly updated and improved. The modification of the change of protocol in this case is Bitcoin Unlimited and consists in increasing the size (quite a bit) of the blocks in the Blockchain of Bitcoin; in turn, the nodes decrease and this tends to centralize Bitcoin, something completely against its nature, given that it was born free and decentralized. What would the change bring? Adopting the Bitcoin Unlimited protocol changes the consensus rules allowing larger miners to take out smaller ones and this is the path leading straight towards the centralization of Bitcoin.
Currently the blocks that comprise the Blockchain are validated every ten minutes, which is to say that a block is added to the chain every ten minutes. This block is currently a small container that holds up to one mega of transactions. The idea of Bitcoin Unlimited is to make this small block a large block. More space, hence more transactions.
So you will think, well, that’s better isn’t? If there are more people, and the world is starting to use bitcoin more, that means this will be better for everyone! At first glance, yes, but — Bitcoin Unlimited places too much management power and control in the hands of a few miners that decide the dimension of the block, it has only a small development team, the protocol has never really been tested, and in fact it has already crashed twice!
The aspect that makes Bitcoin Unlimited the “Judas of Bitcoin” is that non-technicians are acting on the basis of political games and personal egos, excluding the technicians interested in making a better Bitcoin.
The threat of the fork of the Blockchain (hard fork) that is presented and introduced by Bitcoin Unlimited, after Bitcoin XT and Bitcoin Classic, is the latest of a series of failing anti-core proposals.
Bitcoin Unlimited is supported by two old Bitcoin developers, Gavin Andresen and Jeff Garzik, along with a series of neophyte developers with no significant credentials, from the millionaire Roger Ver and Jihan Wu, one of the major producers of ASIC, the computers that are necessary to mine bitcoin. On Jihan Wu are hinging some Mining Pools, that is, companies that have an important role in the support of mining such as Antpool, bitcoin.com, ViaBTC and GBMiners.
Why change the chain in such a drastic and irreversible way when you can simply add some functionalities?
The fork was a strategy that existed prior to arriving at a faster solution that works without dismantling an entire system — that is Segwit (Segregated Witness).
Segwit for example increases the number of transactions that can be contained in a block, and improves the computational efficiency of the Bitcoin nodes in verifying many more transactions, hence the transaction costs would be less.
inbitcoin supports Segwit and the decentralized protocol, uncensored, private and secure, but it is especially your security that is dearest to us and we will keep you abreast of industry developments. We are available for any clarifications. We analyze data and statistics, we prepare, we wait, and we observe to see how strong our beloved Bitcoin is and how it will withstand this neuralgic attack.
For a more technical explanation in English, we invite you to read our our partner’s Blockchainlab’s standing, which we approve and support, at https://goo.gl/gbhyjo
If you want to deepen your understanding read the article on social scalability by Nick Szabo