Fork Day: what will happen to Bitcoin on August 1
steemit·@viphh2017·
0.000 HBDFork Day: what will happen to Bitcoin on August 1
<html> <p><img src="https://profitmaker.today/uploads/posts/2017-07/thumbs/1501260064_logo-11.jpg" width="1000" height="625"/></p> <p><strong>The day of August 1, 2017 for the last months of the confrontation around SegWit was widely advertised in the media, social networks and statements of popular people in the community, as the decisive day for the Bitcoin network</strong></p> <p>Later events, primarily the activation of BIP91, that is, the implementation of the first part of the SegWit2x agreement, significantly changed the state of things. However, by the date of August 1, there is still a lot of attention, supported by numerous assumptions, predictions and the position of some of the major players in the industry. Now, before the "hour X" remains a little over three days, we can more confidently predict what will actually happen on this day, and what will not happen.</p> <p><strong>BIP91 did its thing</strong></p> <p>For the first time on August 1, the date of a possible network split arose in the first days of March, when the situation with activation of SegWit finally reached a deadlock and the proposal of the so-called UASF (BIP148) - pseudo-softcock, which in case of activation guaranteed the separation of Bitcoin's blockbuster into two incompatible chains. A broad discussion has developed around this proposal, and it has received full or partial support from some parts of the community, including large pools and companies such as Bitfury, BTCC, Slush, Coinbase and others. By the end of May, that is, by the date of the signing of the New York agreement, UASF could count on a 10-15% share of hashtrays of the miners and support for several large and many small crypto-exchange companies, from exchanges and purse operators to service developers and equipment manufacturers. Against the background of the same stubborn position of the supporters of Bitcoin Unlimited (later Emergent Consensus), the threat to Bitcoin became more and more real.</p> <p><br></p> <p>However, the adoption of the agreement on SegWit2x (BIP91), providing for the activation of SegWit with the subsequent increase in the size of the block, significantly changed the picture. The overwhelming majority of the miners supported this decision, and BIP91 was activated, which in fact guaranteed the adoption of SegWit and thereby eliminated the threat of a split of the blockage due to UASF.</p> <p><strong>UASF will not</strong></p> <p>The question arises: why does the alternative SegWit2x offer make UASF completely unnecessary, and even technically excludes its activation? Many wrote that the UASF will be activated if the activation of SegWit does not occur before August 1. But this formulation does not correspond to reality.</p> <p><br></p> <p>According to the UASF documentation, if activated, nodes with UASF enabled on August 1 would start rejecting blocks that do not confirm the availability of SegWit according to the original BIP141. However, the first part of the SegWit2x sentence, known as BIP91, ... does exactly the same thing!</p> <p><br></p> <p>Oddly enough, often opposed to each other by incompetent people BIP91 and BIP148 perform the same task - activate SegWit through the original mechanism of BIP141, but in different ways. The BIP148 does this via node voting, forcing the miners to support SegWit, while BIP91 is activated via the vote of the miners, forcing the nodes and the "dissenting" miners, if any, to update their Bitcoin client to the version supporting SegWit. This is what happened on July 23, the day of activation of BIP91. From this day on, only blocks supporting BIP141 are accepted in the main circuit, which means that UASF will not exist, since there is no main reason for its activation - blocks without the "bit version 1" signaling the availability of the miner to support the activation of BIP141.</p> <p>Count for SegWit launched</p> <p>After BIP91 was activated, the countdown for lock-in of Segregated Witness technology started next to this complexity recalculation event that occurred yesterday - its supporters are waiting for this event for the second year.</p> <p><br></p> <p>Now, with 100% support for the miners, this event looks almost inevitable, if there is not any force majeure that can change the position of the miners.</p> <p><img src="https://profitmaker.today/uploads/posts/2017-07/thumbs/1501259347_2nd.jpg" width="1000" height="241"/></p> <p>The fixing period will end on August 9 or 10 (the exact time depends on the change of hashing powers in this period), and after it the direct activation period will begin, after which, probably on August 23 or 24, SegWit rules will take effect in Bitcoin's main network and The three-year stand-off around the methods of network scaling will end in its main part. However, it should be recalled that three months after the activation of SegWit a hardcore is scheduled with an increase in the size of the bloc, which may again exacerbate the relations in the community, to which the first prerequisites already appear.</p> <p><br></p> <p>We note at once that the below-described UAHF hail will not serve as such an event, as it will break away from the main chain and in fact create a separate altkamn with its own blocking, that is, it will not affect the voting process.</p> <p><strong>UAHF will be</strong></p> <p>Originally UAHF (User Activated Hard Fork), was prepared by major Chinese miners, primarily Bitmain and ViaBTC, as a measure of opposition to the UASF. It was intended to rally all the opponents of the transition from the consensus of the miners to the consensus of the nodes, which carries the potential danger of transferring control of the Bitcoin network to the botnets, or rather the groups that control them, and at the same time will deprive the miners of the opportunity to influence the decision-making to change the bitcoin protocol.</p> <p><br></p> <p>Activating BIP91, canceling the execution of UASF, made UAHF virtually unnecessary, and Bitmain confirmed its readiness for further support for SegWit2x. However, ViaBTC, now managing its own crypto exchange and one of the largest mining pools, has always been the most radical position in the debate about Bitcoin scaling. On July 25, ViaBTC announced that it will host the hard-core in any case, even if the activation of AUSF does not happen. In other words, the bitcoin network is still waiting for the inevitable split, but it will not be a struggle for one block, but the creation of an independent altokkam, so it does not in fact threaten the stability of the network and can cause only temporary inconveniences in the first hours after the hardcore.</p> <p><br></p> <p>UAHF should be activated on August 1 at about 12:00 UTC, that is 15:00 Moscow time.</p> <p><strong>Bitcoin Cash, aka ABC and BCC</strong></p> <p>To separate his blockage from Bitcoin, ViaBTC gave him a new name - Bitcoin Cash, and the corresponding to Bitcoin (BTC) token of this network received a reduction of BCC. The software on which Bitcoin Cash will operate is named Bitcoin ABC. It will correspond to Bitcoin Core except for some details: it will not have SegWit and Replace-by-Fee (RBF), and the maximum block size will be increased immediately to 8Mb. To ensure a "safe divorce" with Bitcoin, Bitcoin ABC provides protection against duplication of transactions.</p> <p><strong>Who supports BCC</strong></p> <p>Miners and other representatives of the crypto-currency community continue to publish opinions on supporting the Bitcoin Cash token (BCC), which will appear in case of UAHF.</p> <p><br></p> <p>So, the Chinese stock exchange Huobi expressed its full support for BCC.</p> <p><br></p> <p>BCC is a digital asset generated by the Bitcoin ABC client software - a full-scale implementation of the bitcoin protocol that does not support the controversial SegWit code, replacing it with a simple, reasonable, regulated solution, the representatives of the exchange explained.</p> <p><br></p> <p>Two more major exchanges - Bittrex and Bitfinex - after the hardcore are credited to the users' balances of the amount of BCC, similar to the amount they have in bitcoins, and will also open trade in this crypto currency.</p> <p><br></p> <p>The Electrum crypto-currency purse is more reserved in the statements. He drew attention to the technical difficulties in supporting the "less secure" rules of extraction of BCC.</p> <p><br></p> <p>Electrum will be able to support BCC, changing the rules that we use to test the blocks and create transactions. There are already forks Electrum, who do it.</p> <p><br></p> <p>According to representatives of Electrum, the company is dissatisfied with the use of its logo on the BCC website, as it means the endorsement of hardcore.</p> <p><br></p> <p>We do not agree with the use of the name Electrum in the context of Bitcoin's hardcore, because it assumes that we support it - the company emphasizes.</p> <p><br></p> <p>The Chinese manufacturer of mining equipment and operator of the largest in the Bitcoin network Antpool, Bitmain, calls the BCC "contingency plan". But since UASF is no longer there, the company will not transfer its capacity to BCC mining.</p> <p><br></p> <p>Bitmain does not exclude that, under certain conditions, it can support BCC, but emphasizes that it supports the activation of SegWit and its intention to implement SegWit2x.</p> <p><br></p> <p>At the moment, BCC supports only the ViaBTC pool, which has very solid capacity, from around 8-10% of the network. What part of it will be transferred to the new block, it is still unknown. After the hardfork, if the BCC survives and its course does not collapse probably, other miners who are not satisfied with their income from bitcoin mining may go to this network. In addition, hardfork will cause a decrease in the hashtate in Bitcoin's blockade, which means a decrease in complexity, at least for a period of one recount.</p> <p><strong>What do users do?</strong></p> <p>So, hardfreak (UAHF) on August 1 will take place in any case. However, if everything goes according to plan, it will not cause shocks in the network, and the risk of losing bitcoins lying in purses can be considered zero. What should a bitcoin user do that wants to save their money (or better and multiply them) in this whirlpool of softcuts and hardcovers? First of all, do not panic.</p> <p><br></p> <p>If you keep your bitcoins in your local wallet, that is, you completely control private keys from it, then your bitcoins are absolutely safe. If they are on the stock exchange or in an online wallet, there may be nuances, as the decision for you will be taken by the purse or exchange operator. To save full freedom of action, you should bring your bitcoins to the local wallet (not necessarily a complete node, just an "easy" or SPV version of the wallet) and make a backup copy of the private keys.</p> <p><br></p> <p>The next nuance is getting the "free" Bitcoin Cash coins. Last year, with the split of the Ethereum blockbuster after the hardcore and the appearance of Bitcoin Classic, all the users of the Etherium were able to receive an equivalent amount of ETC coins at no cost to them by simply importing their keys into the Ethereum Classic purse. The same should happen in the case of the appearance of Bitcoin Cash as Bitcoin's fork. After carrying out the hardcore, all Bitcoin users will also be able to download the Bitcoin ABC wallet in the same way and import their keys to it, thus getting the same BCC as they had the BTC before the hardcore. If the exchange rate of the BCC remains high enough, you can get an increase to capital for free. This chance, perhaps, was one of the reasons for today's growth of bitcoin.</p> <p><strong>Sending and receiving transactions</strong></p> <p>If you can not keep the "passive" mode during the period of instability, and will be forced to accept and / or send transactions, you will have to take some precautions.</p> <p><br></p> <p>Risks in the transaction for the sender are minimal, since he in any case part with the money. And if the transaction is not confirmed, then it can be sent again. As for the recipient, there are more significant risks.</p> <p><br></p> <p>Let's consider three basic variants which can occur at carrying out of transactions in bitcoins during network separation after UAHF:</p> <p>1. The transaction was added to the block and confirmed in both networks. In this case, neither the sender nor the receiver should worry: in both networks the sender will send, and the recipient will receive the same amount in both BTC and BCC.</p> <p><br></p> <p>2. The transaction was confirmed in one network, but it was not confirmed in the other. In this case, the parties to the payment will have to negotiate and coordinate their actions. Suppose, if the transaction was confirmed in BTC, but did not pass to the BCC, then the recipient must notify the sender which of the blockrooms (or both) he needs to receive payment. If he does not need BCC tokens, then the question can be considered closed. If the recipient also requires BCC, then the best option is to wait for the final separation of the blockers and re-send the transaction to the BCC after the used amount is returned to the purse of the sender. It is in this situation that the recipient of the transaction should exercise the utmost caution, especially if the sender is unknown to him. The recipient should wait, at least, for the usual six confirmations in the BTC network, but if possible, their number should be increased at least 2-3 times. As for the BCC network, which is weaker and therefore more susceptible to fraud, you should wait at least 24 hours, and in the best case - postpone the actions associated with this payment (for example, sending goods or money) to the full stabilization of the BCC network .</p> <p><br></p> <p>3. The transaction was not confirmed in any network. In this case, as in the first, the sender does not threaten anything, since an unconfirmed transaction for the block does not exist, regardless of the number of hard disks. After deleting the transaction from the levers of the miners, it can be re-run in the desired network. The only inconvenience here is a long waiting period. As for the recipient, for him the only necessary precautionary measure is the main rule when working with the crypto currency - until the transaction is confirmed, it can not be considered complete.</p> <p><br></p> <p>So, the only thing that can threaten the user during the August 1 hardcore is the opportunity to be deceived when making transactions. When following the usual security rules that any bit-keeper should follow, your money is not threatened if you control the keys to your wallet. And on the "bifurcation" of coins, if you do not forget to spend it, you can even earn. Therefore, do not be afraid on August 1 - this day is likely to be the birthday of the next altkokin, but Bitcoin's network and its users are not in danger.</p> <p><br></p> <p><strong>------------------------------------------------------------------------------------</strong></p> <p><strong>If you liked this blog post - please Resteem it and share good content with others!</strong></p> <p><br></p> <p><strong>If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.</strong></p> <p><strong>------------------------------------------------------------------------------------</strong></p> <p><strong>Bitcoin (BTC) - 19Liu6rwR7um8ERgv1FZgrRWfv2AfJZ5pS</strong></p> <p><br></p> <p><strong>LiteCoin (LTC) - LUGzxEXyCuKWRVnNy7botEBQgU1u9dcyvv</strong></p> <p><br></p> <p><strong>Dogecoin(DOG) - DTJKPR9LeLLydMHrJaFH8zS6N1mGknk1CB</strong></p> <p><br></p> <p><strong>------------------------------------------------------------------------------------</strong></p> <p><strong>Subscribe to me - @viphh2017 Vote for my posts.</strong></p> <p><strong> Leave your comments, and thank you for your support.</strong></p> </html>