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Bitcoin Forks Into Two, New Era Dawns For Bitcoin

Bitcoin in many ways is synonymous with cryptocurrency and it was the first of its kind when it arrived in the world in 2008. Since the time Bitcoin has been in existence millions of transactions have been successfully conducted on its Blockchain.

With the passage of time though Bitcoin transaction speeds had slowed down and it was akin to moving sludge along the pipes. The slowdown in Bitcoin is the result of its own success as more and more people use the currency and conduct transactions. The very nature of Bitcoin is such that it requires thousands of miners to keep it functional and run Bitcoin software.

It is also necessary that big decisions such as solving the speed problem are made with the consensus of those that are involved in the running of Bitcoin.

The Bitcoin fork is here

Bitcoin has not been able to evolve the consensus that was needed to implement the technology called SegWit2x, which though has been adopted by key players, still lacked a total agreement.

This has resulted in the launch of Bitcoin Cash, which is rival to the SegWit2x technology. While SegWit2x involves taking Bitcoin’s transaction data out of the block and allowing more transactions to happen that way thus increasing the speed of transactions overall, Bitcoin Cash would keep the data within the block but increase the size of a block to 8MB.

Now that two rival technologies have emerged we have a scenario where a portion of Bitcoin nodes are not fully compatible with others.

 

CNBC cited Coinmarket cap as saying:

“A Bitcoin block was just mined that's invalid for Bitcoin Cash nodes! [That] means the chain has now forked. Bitcoin Cash is one block behind."

Does the fork mean free money?

In a way it does and in a way it does not. Many people will be getting both the currencies after the fork in their wallets but some would not. What the eventual value of either BTC or BCH would be, would depend on market forces.

We can look forward to the future

Bitcoin is now nearly a decade old and the fork is just another step in the journey of the world’s first cryptocurrency.

Whatever might happen price wise, one thing is certain Bitcoin has entered a new era and the possibilities for growth are immense. Faster transactions, newer applications and more rapid adoption by businesses.

Source: Cointelegraph.

 

  • August 1, 2017 10:44 PM MSK
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