SegWit2x was supposed to be a SegWit derivative that doubled the amount of data that a block could hold from 1 MB to 2 Mo. The SegWit2x plan was launched at the 2017 Consensus Conference in New York. At this event, 58 companies related to Bitcoin signed an agreement proposed by Digital Currency Group – the company originally from $ GBTC. This agreement proposed that SegWit be activated as soon as possible and that it be followed by an increase in the size of the blocks in mid-November. The agreement was known as the New York Accord (NYA).
CoinTelegraph was able to collect data on 57 of the 58 original companies that signed the NYA. Sixteen companies were portfolio providers, 15 were exchanges, nine were miners and 17 companies could be classified as "other". In this case, "other" means that they are companies that provide goods or services in the cryptocurrency space.
Over time, a number of companies have begun to withdraw from the NYA or have decided to focus their resources on Bitcoin Cash instead of Bitcoin and on the proposed SegWit2x upgrade. By early November, 12 companies had withdrawn from the NYA, eight had focused their resources on Bitcoin Cash, and 38 of the original 58 companies still supported SegWit2x.
Reneging
Of the 12 companies that were withdrawing, one company was a portfolio provider, three were exchanges, and eight were" other. "No miners were involved. is officially withdrawn from the agreement, although F2Pool has stopped reporting SegWit2x in mid-October All companies that have withdrawn from the NYA have publicly announced their reasons.
SurBTC, a exchange of Bitcoin and Ethereum in Chile, Colombia and Peru, said their departure was:
if we would be happy to have moderately larger blocks to acc To meet the growing demand, we believe that Bitcoin needs (at least s of a majority) support from leading Bitcoin developers to do so responsibly. We have not seen this support and we do not like what we are currently seeing on the btc1 code repository in terms of technical considerations and open source collaboration.
SegWit2x received a lack of support from the Bitcoin Core Developers and the wider crypto-community.The main developers and many in the community thought that it was too early To upgrade the Bitcoin network, SegWit2x was to occur in November, just three months after the network upgrade to SegWit.
California-based Civic Corp took Twitter a few days before SegWit2x was canceled for to express his reasons for withdrawing from the NYA Vinny Lingham, CEO / Founder of Civic, said:
In light of the recent death threats that I have received, I realize that Segwit2x is a bad idea and I publicly revoke my support.
– Vinny Lingham (@VinnyLingham) November 2, 2017
SegWit2x Suspended
On November 8, 2017, Mike Belshe issued a statement hold Naked by Casares Wences, Jihan Wu, Jeff Garzik, Peter Smith and Erik Voorhees:
"It is clear that we have not reached a sufficient consensus for an update of clean blocks at this time .. we are suspending our plans for the next upgrade of 2MB. "
Many agreed that SegWit was a sufficient short-term solution to the congestion problems that the Bitcoin network was experiencing. This congestion resulted in high transaction fees and slow confirmation. However, supporters of 2X felt that the implementation of SegWit simply postponed another network overhead. They thought that doubling the size of the block would give the network a little more latitude until a permanent scale solution could be implemented.
Although SegWit makes transactions more efficient, the Bitcoin network continues to suffer from severe congestion. transactions at the time of the press. The number of transactions increases rapidly, and SegWit itself did not prove sufficient to handle the charge
The market goes crazy
In the morning SegWit2x was suspended, the price of Bitcoin was $ 7,200. Many speculated that investors had increased their Bitcoin position to receive more 2X chips. Indeed, those who received large amounts of Bitcoin Cash in the division of August 1 found themselves well rewarded financially. This led many people to believe that the forks were essentially "free money" and that all they had to do was align them to receive them. Of course, they neglected to realize the existential threat that a chain of partition between Bitcoin and Bitcoin 2X could have engendered
Immediately after the announcement of the SegWit2x cancellation, the Bitcoin's price jumped to $ 7,800 before falling back quickly. At first it seemed that the cancellation of a dangerous hard pitch had boosted investor confidence in the Bitcoin network. As the split did not occur, the network was more unified in terms of hash power and cooperative nodes, both of which play a vital role in the Bitcoin economy.
Yet on November 10, the price of bitcoin dropped as low as $ 6,400. Why? With the fork hanging, investors may have had the impression of having inflated their position at Bitcoin for no reason, since they would not have ended up receiving this "free money" after all. It is also likely that the remaining "big blockers" have decided to leave Bitcoin, eventually migrating to Bitcoin Cash or Dash.
Finally, the price of Bitcoin dropped to $ 5,500 before bouncing back to about $ 6,600. As the price of Bitcoin dropped, that of Bitcoin Cash rose from 600 to 2,600 dollars in a few days. The alternative currency has since lost half of its value, and stands at about $ 1300
And then?
Although the implementation plan of SegWit2x was a bit hasty, the scalability a problem for the Bitcoin network in the future. The volume of transactions on the Bitcoin network is increasing every day and transaction costs are skyrocketing. Many people have put their hopes in the lightning network, which is expected to pull many transactions out of the chain, increasing network capacity. For now, the lightning network has not been deployed, and the use of the Bitcoin network is prone to delays and high expenses.