SegWit2X has garnered massive attention in the cryptocurrency communities recently. Even though the proposed change was later abandoned, it is believed that this scenario will later play out. SegWit2X is a planned hard fork originating from the New York Agreement. If you don’t understand what a Fork really means, read up on it here. If the proposed hard fork was successful, it will create another Blockchain currency known as B2X. Assessing whether SegWit2X is good for Bitcoin is not the focus of this article but to critically consider the position of the winners and losers of SegWit2X dilemma.
Currently, SegWit2x has its support from miners and startups who have different reasons for their support. The miners are those who run the hardware necessary for securing the blockchain, thereby making a profit off their services. The startups on their own provide services directly to users. Allowing them to receive and spend cryptocurrencies, which is where they make their own profit. They pose three arguments in support of SegWit2x;
Bitcoin is Digital Money
Startups and miners believe bitcoin is a digital currency and emphasis should be on its acceptability. They see a bitcoin that competes favorably with other fiat currencies. In essence, they want Bitcoin to become a recognized means of exchange.
Despite the time and effort invested in SegWit, the impact of the upgrade is not felt by miners and users. Startups believe SegWit2x will cover up for the shortcomings of the slow boost to the Blockchain network. Especially in areas of transaction fees and transaction time.
Startups and miners believe the problems and complexity of Bitcoin can be solved by SegWit2x. It is due to these problems that other coins are gaining ground. Most of the altcoin has progressed to having a real-life application, a situation that could have been dominated by Bitcoin.
Who Are Those Opposing SegWit2x
At the other end of the argument against Segwit2x are the developers and the node operators. These two categories of stakeholder have their own fundamental reasons for the rejection of SegWit2x. The major reasons for rejection by node operators is the increasing storage cost that will occur by increasing block size from 1mb to 2mb. Their argument limits the use of Bitcoin as a payment option. Developers still view Bitcoin just as a store of value. The risk involved in the implementation of Segwit2X is another concern for the developers. If it fails, the Bitcoin project will suffer set back and the effect will be largely borne by these developers.
Lastly and majorly of their reason for opposition is the enormous power Segwit2x will hand over to miners and startups. This situation that will challenge the position of the developers and node operators. Whenever SegWit2x is eventually implemented, no one can predict what its effect will be on Bitcoin and the Blockchain network. As users and holders of Bitcoin, it is important to stay abreast of the situation. SegWit2x may mean free coins or no coin.
Also published on Medium.