There are two main ideas for the scalability problem in case of Bitcoin blockchain, and there was a small block group that seeks another solution while maintaining the block size and the big block group that aims to increase the block size. In addition to the low block group consisting mainly of bitcoin cores and the big block, the group is consisting of minors such as Bitcoin Unlimited, aiming to improve block size efficiency while expanding the block size as a compromise between both parties. The Segwit2x sect” was born, and finally, three factions will compete for Bitcoin.
Small block group consisting of developers Segwit promotion
Segwit is a technology that reduces the amount of transaction data by separating the electronic signature from the transaction and storing it in an area called the witness. In the current Bitcoin specifications, an electronic signature is included in each transaction, and the data size squeezes the block size. Segwit, which secures the block size by separating the electronic signature, says that the block size excluding the electronic signature part is applied in software that does not support Segwit. The new rule for block size is applied in software that supports Segwit. It is a mechanism. Segwit is expected to reduce data processing, but even if the transaction capacity improves temporarily, it may be necessary to review the block size in the long run, which is the origin of the feud with the big block group. But there is.
Big block group composed mainly of miners Segwit denied
Expanding block size is an idea asserted by those who favoured Bitcoin Unlimited. The idea that if you can’t afford the block size, you can increase the block size seems simple, but there are many problems associated with increasing the block size. Due to the increased block size, it becomes difficult to secure the necessary hash power, and some miners who can make the capital investment may become monopolized for mining. Security risks such as DDoS attacks that Satoshi Nakamoto feared are. While there are such indications, the big block group expanded the block size from 1MB to 8MB to process a massive number of transactions because many people use it as payment currency. Coin Cash will be born.
Segwit2x group aiming to increase the block size and apply Segwit
After the hard fork of Bitcoin Cash ended before three years and the scalability problem once gathered, in last year, a hard fork was planned to unify the blockchain of Bitcoin to the blockchain of Segwit 2x. Eventually, Segwit2x was announced to be postponed. Still, the replay protection implemented during a hard fork will not be implemented do not consider the new bitcoin born by forking and the original bitcoin as separate. The hard fork plan caused a divergence of opinions among various stakeholders, including developers and exchanges.
Challenges of Bitcoin considering from comparison with Bitcoin Cash
Bitcoin Cash is the virtual currency created by hard forking Bitcoin. Since Bitcoin is a system that does not require a specific administrator, you will seek ways to solve Bitcoin’s issues while discussing with network participants. Bitcoin Cash was created as a result of controversial opinions under these discussions.
Comparing and understanding the features of Bitcoin Cash and Bitcoin also leads to an understanding of the challenges of Bitcoin. Here, let’s compare the characteristics of each virtual currency and look at the challenges faced by Bitcoin today.
What is Bitcoin Cash?
Bitcoin Cash is a hard fork branch from Bitcoin, a virtual currency created to solve the problems that Bitcoin created in the process of expanding its industrial area. Bitcoin Cash, which aims to be used as a payment currency around the world with inexpensive fees, is developing to address the scalability problem of Bitcoin by increasing the block size. The basis of the development is a paper by Satoshi Nakamoto, a proponent of Bitcoin, and now you disagree with Bitcoin, which decides the direction centred on the developer.
Bitcoin Cash is one of the leading Altcoins with a market capitalization within the 5th place. Some of the people who support Bitcoin Cash say, Bitcoin Cash is real Bitcoin, and it is expected that it will spread in the future.
