• Sat. May 21st, 2022

August 1 and the potential disruption of the Bitcoin network – Featured Bitcoin news

If you’ve listened to the bitcoin ‘community’, you know that in about two weeks, the bitcoin network could be facing protocol changes. Due to the possible User Activated Soft Fork (UASF) planned and the possibility that some groups will thwart this plan, this has created thousands of discussions regarding August 1. Now, the bitcoin-focused web portal Bitcoin.org has issued a warning to the site. which informs users of a “potential network disruption”.

Read also : Mining, merchants and traders: Thailand has Bitcoin fever

August 1 and potential network disruption

Bitcoin users everywhere are bracing and discussing at length the possibility of a blockchain split. The subject has been discussed a lot last March when bitcoin supporters and cryptocurrency companies feared a potential split when the implementation of Bitcoin Unlimited had strong support. Now the conversation has resurfaced, but the subject of UASF or BIP148 is an entirely different scenario.

August 1 and the potential disruption of the Bitcoin network

UASF (BIP148) is a mechanism designed to start on August 1, 00:00 UTC, which activates a soft fork applied by full nodes. After this point, full nodes participating in this plan will reject blocks that have not been upgraded to BIP141, also known as separate cookies (Segwit). At press time there is 1095 in total UASF nodes on 7896 Bitcoin nodes accessible worldwide according to Bitnodes. UASF needs a lot of support from industry and miners to activate Segwit. At this point, if they do not support activation, the chain might diverge into two.

August 1 and the potential disruption of the Bitcoin network

Currently, some companies have announced their initial support for BIP148, such as Abra, Trezor, Samourai Wallet, Electrum, Coinomi, Mycelium and around 37 other organizations. However, there are many wallets and a large majority of exchanges that have neither announced any support nor issued any warnings regarding Segwit’s next application on August 1. This includes a significant number of wallet and exchange providers including Bitstamp, Kraken, Bitfinex, Gemini, BTCC, Poloniex, and many more. A relatively small exchange in Switzerland called Bity has warned its customers, the platform will stop trading on August 1.

Warning from Bitcoin.org

Wednesday July 12, 2017, 08:00:00 GMT Bitcoin.org issued a warning regarding the potential grid disruption which could occur on July 31 20:00 GMT / August 1 00:00 UTC.

“Bitcoin confirmation scores can become unreliable for an unknown length of time,” explains the network disruption warning. “This means that any bitcoin you receive after that date may later disappear from your wallet or be a type of bitcoin that other people will not accept as a form of payment.”

Once the situation is resolved, the confirmation scores will automatically revert to their normal reliability or there will be two (or more) competing versions of Bitcoin. In the first case, you can start using Bitcoin again normally; in the latter case, you will need to take additional steps to start receiving bitcoin safely again.

August 1 and the potential disruption of the Bitcoin network

The warning gives users preparation guidelines and possible outcomes during and after the UASF event. This includes not trusting payments during this time and not sending payments until the dust settles. Even the maintainer of the Bitcoinuptime.com website says there may be “potential bitcoin downtime from the next BIP148 fork” and from the network 99.991523267% availability will need to be updated. In addition, there was a problem regarding the Bitcoin.org alert on the wording “Bitcoin may be dangerous to use from July 31” as opposed to “potential network disruption”. The developer who made the change writes;

Note: I am opposed to this change which in my opinion makes the alert less clear, less powerful and degrades the usability of the alert. I am making this change only because the maintainer of the Bitcoin.org site insists on it.

GDAX issues statement regarding UASF

In the wake of the Bitcoin.org disruption alert, a large bitcoin exchange showed up issuing a warning and explaining how the company will handle the August 1 situation. The GDAX cryptocurrency trading platform, a subset of Coinbase announcement there will be a temporary suspension of deposits, withdrawals and possibly trades on August 1st. Adam White, director of GDAX, said that “activating UASF could create two blockchains” and describes how the company plans to handle the possible fork. If August 1 results in two chains, GDAX indicates;

  1. One blockchain becomes dominant causing the other blockchain to have low adoption and value by the community.
  2. The two blockchains are adopted, coexisting and functioning independently of each other with roughly equal adoption and community value.

In either scenario, we will implement safeguards to ensure the safety of our clients’ funds. For example, we will temporarily suspend bitcoin deposit and withdrawal on GDAX and may also suspend bitcoin trading. This decision will be based on our assessment of the technical risks posed by the fork, such as replay attacks and other factors that could create network instability.

Bitcoin ABC

Another possible scenario to consider is the “Bitcoin ABC”(Adjustable Blocksize Cap) implementation that has been revealed by the software engineer, Amaury Séchet at The future of Bitcoin event in Arnhem. The project released its latest client Bitcoin ABC 0.14.2 and says it’s a full node implementation of Bitcoin that removes the Segwit code and replaces it with an adjustable block size cap. During the initial announcement, Séchet explained that Bitcoin ABC was part of the user-activated hard fork emergency plan against BIP148.

August 1 and the potential disruption of the Bitcoin network

In essence, the ABC protocol prepares for any disruptive risk associated with the activation of the UASF and could also activate during the “Flag Day” of August 1. In addition to being a contingency plan, the UAHF protocol will move the block size cap towards enabling an emerging consensus where users can decide the block size for themselves. Bitcoin ABC could counter the BIP148 soft fork which could cause a disruption of the network, as well as a possible split of the blockchain.

Meanwhile, the Segwit2x plan moves forward amid constant egos and bickering

Along with these two alternative plans, the Segwit2x working group also regularly prepared the announced compromise idea called the “New York Accord”. The group released beta code and experimented with the Segwit protocol and a 2MB hard fork on a Bitcoin test network. So far there has been a lot of quarrels about Segwit2x between the main developer of the project Jeff garzik, the main developers of Bitcoin and the CEO of Blockstream Adam back. Many main supporters refuse to compromise on Segwit2x by calling it “Franken-segwit” and a large majority of the main developers have rejected the idea of ​​supporting the idea. However, some senior maintainers have commented on Segwit2x’s Github and Workgroup Slack channel. Uncertainty remains over the plan for the New York Accord, but the task force continues to move forward as August 1 approaches.

As for August 1, users should make sure they have their private keys. There is a possibility of network disruption and Bitcoin.com will let our readers know everything people need to know, including trade updates, trading, withdrawal and deposit suspensions, and any other important information regarding that specific date.

What do you think of August 1st? Do you think there will be a potential disruption to the network or do you think nothing will happen at all? Let us know what you think in the comments below.

Images via Shutterstock, Pixabay, Saltylemon.org, Bitcoin.org, and Bitcoin ABC.

Tags in this story

Adam Back, August 1 BIP148, Bitcoin, Bitcoin ABC, Bitcoin Core, Bitcoin.org, Core Developers, Exchanges, Jeff Garzik, N-Featured, SegWit, Segwit2X, UAHF, UASF

Show the world how cutting edge you are with a Bitcoin t-shirt, hoodie, bag, keychain, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, a payment system that makes you say “wow! “

Source link