Bitcoin why “may” be One divides into two.

Bitcoin why “may” be One divides into two.


The expansion proposal of bitcoin, the parties have argued for a few years, put forward a scheme of N.

Recently came the BCC, this article take you down to a sort of dragon vein.

What’s going to happen on August 1st, bitcoin has had a raise a Babel of criticism of the community. Bitcoin will split into two new currency? No? What is the BIP91? What is the BIP148? What is the isolation of witness? 

August 1st has been close at hand, but there are still many mysteries.

In order to understand the current situation, and why the bitcoin community One divides into two., the best way is to look at the nature of encryption currency – or more accurately, why do people have different views on how to fix the problem. 

One side is a contradiction, bitcoin management source code of people. They are like management institutions, bitcoin bitcoin development maintenance, ensure operation. On the other side, the contradiction is the miners, they deploy the computer to run the bitcoin network. For bitcoin operation of both sides is crucial, lack of which side. To understand the problem of bifurcation / split, you must understand the mechanism of bitcoin.

Bitcoin has what problem?

Most people regard as bitcoin digital currency, you can be used for online sale of goods. Technically this is true, but this is not the real value of bitcoin.

Bitcoin is not feasible in everyday transactions, we also could not walk into a Starbucks, then use bitcoin to buy coffee. Why is this so? Bitcoin is not the creator wants to turn it into a substitute for other currencies? This will enhance the value of bitcoin.

The reason is bitcoin blockchain is relatively slow, and expensive. Is not up to the standard of payment technology, bitcoin can only have a maximum of 6 transactions per second, while VISA network can handle 1600 transactions per second.

When the public can accept the network to the center? When you go to the center of network like existing payment network as fast and convenient time. Otherwise, it can only be used for storing the value of bitcoin.

Why so slow? 

The bitcoin network is built on the block on the chain. If you don’t know what is the Qu Kuai chain, you can put the Qu Kuai chain as a register, save some sheets of paper (Qu Kuai), each piece of paper kept a few transactions. When a page filled with the transaction, it is added to the register, and then to record the new deal on a piece of paper.

On a piece of paper (block) can be added to the register (chain) before the need for treatment, to ensure that everyone agreed to save the contents of the paper. This process takes about 10 minutes for each block.

Imagine, you send 1 coins to your friend, joe. The deal is probably like this:

In addition to other information, transaction information mainly includes: sender, recipient, and the amount of the fee. 

Wait, including fees? Yes, you have to pay an extra fee, so the miners have the power to add to your trade as soon as possible on the block. The fee is not fixed, how much is the amount you decide.

At any given moment, in the current paper have multiple transactions need to be recorded. If you check, not determine the number of transactions in a certain time of the day, should be tens of thousands of.

The miners need those transactions decided to add to the current block up. They will usually choose those who can get the most return transaction —- That is to say, the transaction costs will be the highest trade priority.

If the transaction cost of your transaction costs high trading enough, then you must be waiting for the transaction. This process may be waiting for a few minutes, it may be several hours. Even a few days. If you pay the transaction costs is high, the miners will be more quickly to process your transaction.

For users, the use of bitcoin becomes slow and expensive. This should not be the “internet currency” should look like.

However, the smart guys began to put forward an important question: how can we expand the performance of bitcoin blockchain?

Interestingly, the smart people too much. Running the bitcoin people (code maintenance people) believe a solution, while the miners believe another solution.

By maintaining the code plan for the user, by the proposed scheme for miners miners themselves. The difference is that in August 1st, is the bitcoin may split the differences. Let us first look at the two kinds of solutions is what.

For users of the program

Maintenance of bitcoin code to the question is: how do we store transactions in a block. Their plan was originally want to move away the ductility of the block, which has a good side effect: it can improve the performance of the blockchain. In order to better understand this, we need to know what it’s like to block.

This solution has several names, such as BIP148, and isolation of witness, the user activates the software (UASF —User Activated Soft Fork branch).

The block is what look like?

Most simply, the chain block contains two types of data: header data and transaction data.

The first data contains the metadata of this block, but it has nothing to do with the bifurcation in August 1st. The first data is very small, only accounted for only 1% of the data block. The other 99% of the data is transaction data. If we go deep to see: a deal is how the composition? In addition to the information that obviously — such as the sender, the recipient, and the amount of transaction fees, besides, it also contains other information, such as the “signature” or “witness”. For the balance of the sender’s signature verification enough to send the deal. This part of the data is only useful in the beginning, but it is up to the transaction data 65%.

The block size is only 1MB, and most of the data it contains is not so important data. The idea is to witness the signature / move data to block the tail, with a separate structure.

The separate structure does not need to be added to the block chain. If a node ( Independent computers on the network. ) Can handle it very well. If it can’t, that is no problem. Because of this characteristic, it is called soft bifurcation.

Some nodes will upgrade their software, and then run the chain structure of the new block, who decided not to upgrade, and the nodes use the original software only need to ignore the witness the part of the data on the line. Through the optimization of the structure, can make more transactions to a block to add.

This scheme is called isolation witness, because it is the part of block structure in isolation from the witness (separation). This scheme is good for users.

Why the witness isolation scheme for users?

The new structure than the existing structure can save more transactions. This makes for uncertain trade competition becomes small. Therefore, the transaction costs can be reduced. As part of a transaction fee is the return of the miners. To reduce the transaction costs, the miners return will be less. Not only that, this new structure is also called the lightning network, which can real-time processing of micro transactions, and do not need poundage.

The main question against such schemes, this scheme is a compromise, eventually to be hard to fork. It is hard and bifurcation of miners’ proposal.

Help the miners plan

The miners’ proposal is: can solve the problem of long-term network development. Their proposal is: the implementation of witness isolation (soft bifurcation) then, they also want to, the size of the blocks is increased from 1MB to 2mb. Therefore, this scheme is called: segwit2x.

This scheme is also known as the miner (MASF Miner Activated soft activation bifurcation Soft Fork) and BIP 91.

At first glance, this scheme seems to be much better.

I can almost hear you in joy: the network will become faster! Good lord!

However, the devil is in the details. If the implementation of this scheme, each miner on the network will have to upgrade their hardware and software. This program can not be backwards compatible. Do not upgrade the miners will be network isolation. This is why it is called hard bifurcation. We look at the plan carefully.

Ten miners hypothesis network, six of them decided to upgrade to a larger block size. The six miners continue to work, making the longest chain becomes longer, but they had dug the block, will be the remaining four miners still retain the old block size is discarded.

Why Segwit2x The miners favor?

Because not everyone has enough money to upgrade their computing power, so small miners will be expelled from the network. As a result, the network is only a few large miners — this will sharply reduce competition.

  The Cong proposed go to the center of the future of this vision, he said not only in theory, but also to actually go to the center of the future establishment. Give the power to the hands of a few big miners violates the fundamental idea of bitcoin.

If you ask the miners why? They will say: We support the operation of the network. We must speak for our interests. If we just turn off the computer, there is no bitcoin.

If they do, they might be right. But they are wrong.

“If they are gone, there is no bitcoin” this sentence is right, but they only support the operation of the network “this sentence is wrong, it sounds like they are running a general bank and government. 

Block chain is not only a kind of agreement can conduct financial transactions. It is a change in our belief in the agreement.

Based on this protocol, there is no question of ownership. Everyone is the owner of the network, at the same time, that is to say, no one is the owner of the network. The sooner we accept this point, we can solve the problem sooner.

So what is bitcoin split?

Remember the above example? The six big miners dug by the block was four small miners away. Let’s take a look at their eyes, what kind of chain block. Four miners are still the old block, continue to dig their own blocks, and then generate the longest chain of their.

At this time, the old block chain split into two chains. Some nodes in a mining chain, some nodes in the other chain. We can make a mark in the blocks chain:

“Bitcoin common” is before the split part of the upgrade of computer in “the miners mining branch of bitcoin current, did not upgrade the miners in this branch of the bitcoin classic”.

This is bitcoin, One divides into two.. The user to coins can be used in bitcoin current and bitcoin classic of the two chains in bitcoin common. However, future transactions in bitcoin classic on bitcoiin current in the future and the currency trading currency is not the same. The value in quantity, acceptance, they are all different. They are two different as digital currency.

What is the impact on your bitcoin?

It depends on where you bitcoin. If they are in your computer, you can use them two times – each with a chain. But if they are kept in the online wallet, then look at how to deal with the online wallet.

What to do with the block chain branching, each online wallet has their own way. They may take your money to migrate to one strand, may allow you to use in the two strand. This is the concrete analysis of concrete problems.

My suggestion is that in August 1st after a few days do not make any transaction. Or as a result of the bifurcation, you might lose money. After all, bitcoin is just a bunch of transaction records. If you are not the two chain trading records, then they are forever lost.

What will happen in August 1st, many people are so anxious. Over the past few weeks, the market is hitherto unknown shock. When writing this paper (July 24th), almost all of the miners are signed BIP 91 (miner’s proposal). In view of this, looks bitcoin will avoid a temporary split in August 1st, but it can not be guaranteed. The miners say they will implement the BIP91 does not mean that they will really implement. This is their intention statement.

The implementation of BIP91 real, most miners must be before August 1st, software upgrades to all their computers. Run the upgrade version of the software is still less than 50% miners.

If the miners still insist on next week, then segwit in part segwit (isolated witness) will be activated, and 2x (part of the block size increased from 1MB to 2MB) will launch later this year, it is hard to bifurcation. When the hard bifurcation of what will happen? I will explain in another article.

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