Understanding Segwit2x

With block 494,784 fast approaching, let’s take a look at where the looming Segwit2x fork stands.

So, what is Segwit2x?

Not everybody was happy with just implementing SegWit, and preferred to increase the maximum size of Bitcoin’s blocks as well. This would give the network some more room for growth while lightning network was being deployed. Bitcoin’s Core developers do not want to increase the block size, primarily because that involves a hard fork, which is potentially dangerous. A hard fork happens when computers running new versions of the software are no longer compatible with computers that run the old (legacy) version. If done incorrectly, this can cause really bad things to happen.

On May 23rd, 2017, the Digital Currency Group published the New York Agreement (NYA). The New York Agreement was signed by a large number of Bitcoin companies and by miners representing over 80% of Bitcoin’s hashpower. The signatories of the agreement accepted a compromise called SegWit2x. This plan would call for the near-immediate activation of SegWit, and would follow that with a hard fork in November to double the block size, reports Cointelegraph.

Also of importance here will be the perceived value of a Segwit2x cryptocurrency.

Already, exchanges are experimenting by listing a version of the coin – one that lives only on their order books – as a way to test the value.

At press time, the value of the new version of bitcoin was estimated at just over $1,000, double the price of bitcoin cash ($450) and much higher than bitcoin gold ($130).

When will all this occur?

But while there remain many ifs, one thing we do know is the fork will occur on or around Nov. 16.

However, an exact date can’t be pinned down. This is because the change will be enacted at a specific block (number 494,784), at which time miners will be able to run the new software.

Still, those involved with the project are adamant that it is moving forward, with the project’s lead developer stating just last week that the updated code will be released based on the mid-November plan, reports Coindesk.