If you’re new to the Bitcoin world, it is an exciting time to witness all the latest news and innovation that comes out every day. It has so much potential to change today’s behavior in consumerism and what we think about money! There is a lot of room to learn as well as a lot to contribute. For example, ICO’s are announced nearly every day, “mining” is now more profitable than arms and drug trafficking, and central banks sweating bullets knowing that they cannot stop this monstrosity!
But with all this hyper-growth, there are still plenty of dilemmas that occur every day. For starters, the Bitcoin community has encountered a serious conundrum involving the next directions of growing Bitcoin. Of course, everyone wants cryptocurrencies to forever grow, but it has come to point where over sophisticating the current process will impact “the little guy” to participate aka YOU! Which is why today you may be seeing some influencers changing their handles to “NO2X”
What is NO2X?
At the latest cryptocurrency convention called Convention 2017, thousands of Bitcoin advocates, as well as Bitcoin companies, gather together to discuss the latest and greatest of BTC. In 2017, however, it appears that groups were in a divide in terms of how they wanted to grow their beloved cryptocurrency. One group vouched to increase the Block-size for crypto while others preferred “Segwit”. The conclusion to this event was a call for companies like Coinbase to COMBINE both increasing the block-size and including Segwit into their business.
This impact left plenty of drama in the community. Many argued that core developers of cryptocurrency were not involved; therefore did not have a say to approving this direction. Also noted was the price to join this event – a whopping $2600! The average miner simply cannot afford to nonchalantly spend this money which also leaves another huge factor to this decision: the average user. Without these two voices, BTC could foresee a very bleak future.
What is increasing the block-size?
If you are a Bitcoin miner, you would know that the maximum limit of a “block-size” is 1 MB. Any larger than 1 MB will be invalid unless a hard-fork is implemented. This allows new-miners with limited technology to participate in mining, which has most likely been the sole reason of Bitcoin’s success. But now that Bitcoin has been seeing tremendous success, it appears that more avid miners want access to MORE transactions, MORE fees, and MORE $! Personally, we don’t blame them for their ambition, but many forget that it was the average person’s interest in BTC that fueled the growth of cryptocurrency.
Right now, there do exist cryptocurrencies that can be mined with block-sizes larger than 1MB. Bitcoin Cash and Bitcoin Core are the most popular so far.
What is “Segwit”
“Segwit” is short for Segregated Witness. A segregated witness essentially wants to reform how transactions are normally done through Bitcoin exchanges. In a normal Bitcoin exchange, there needs to be a script, signature, and public key in order for a BTC transaction to occur. Segwit wants to change this protocol as there are plenty of inefficiencies in the process. Segwit’s proposal is that they want to scrape this entire process, and put it in an entirely new block called an “extended block”. This would reduce the size of a block which would make blocks lighter and transactions a lot faster to process. To summarize – every transaction has a script, which takes up a lot of data. Segwit rips this entire process into more blocks.
Why This is Unfair
In theory, 2X sounds like an amazing plan for companies like Coinbase to initiate. Not only would it increase transactions for miners, but it would also increase the complexities for BTC. But what about those who just started? Right now, it roughly costs $800-$1K to have a full running computer that can mining BTC sufficiently. The only additional costs would be your electricity bill. By adding both Segwit and increasing block-size, more miners would have to add more money into their technology, and that simply would cut off any newcomers to this space. While I understand the purpose of increasing its capacities, I too began as a poor college student that thought to risk $20 into cryptocurrencies was equivalent to an arm and leg! I’m a huge advocate of capitalism, but not a supporter of greed; therefore, I too say NO to 2X.