56 Bitcoin Companies Approve Segwit-2Mb Combined Fork Plan

56 Bitcoin Companies Approve Segwit-2Mb Combined Fork Plan

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Barry Silbert’s firm the Digital Currency Group (DCG) revealed a scaling agreement on May 23 with a letter of intent backed by 56 Bitcoin companies, for Sergio Demian Lerner’s recent Segwit-2Mb plan. The announcement states the signed agreement represents a “critical mass of the bitcoin ecosystem” with 83.28% of hash power supporting the proposal.

Also Read: Sidechain Juggernaut RSK Labs Launches Ginger Testnet After $3.5M in New Funding

The Anticipated ‘Barry Silbert Scaling Proposal’ Has Been Revealed

For a few days bitcoin enthusiasts have been anticipating the56 Bitcoin Companies Approve Segwit-2Mb Combined Fork Plan “Barry Silbert” scaling plan  hinted at a few days ago. Following Silbert’s statements about a new scaling effort, a meeting took place in connetion to the Consensus 2017 conference. As the conference came to an end, Silbert’s venture capital firm DCG revealed the compromise proposal.

The agreement is supported by 56 digital currency companies stemming from 21 countries worldwide. The letter states the agreement has the backing of over 83 percent of the network’s hash power. This group represents 5.1 billion USD monthly on chain transaction volume and 20.5 million bitcoin wallets within the economy.

“We agree to immediately support the following parallel upgrades to the bitcoin protocol, which will be deployed simultaneously and based on the original Segwit-2Mb proposal,” explains the DCG announcement.  

Activate Segregated Witness at an 80% threshold, signaling at bit 4 and activate a 2 MB hard fork within six months.

A Proposal to Lower the Segwit Threshold to 80%

Prior to DCG’s announcement 56 Bitcoin Companies Approve Segwit-2Mb Combined Fork Plandiscussions of lowering the Segwit threshold that took place during the Consensus 2017 scaling panel, Eric Lombrozo stated it was possible to lower the Segwit threshold. After the discussion on May 22, Bitcoin developer James Hilliard proposed a “Reduced signaling threshold activation” BIP.

“I would like to propose an implementation that accomplishes the first part of the Barry Silbert proposal independently from the second: ‘Activate Segregated Witness at an 80% threshold, signaling at bit 4,’” explains Hilliard. “The goal here is to minimize chain split risk and network disruption while maximizing backward compatibility and still providing for rapid activation of Segwit at the 80% threshold using bit 4.”

By activating segwit immediately and separately from any HF we can scale quickly without risking a rushed combined segwit+HF that would almost certainly cause widespread issues.

Companies/Individuals that Approved Consensus; The Future of Bitcoin

Some of the notable companies and people that agreed to this Segwit activation compromise include Decentral, Grayscale investments, Jaxx, Bitmain, Xapo, Yours, Bitpay, Gavin Andresen, Bitcoin.com and Guy Corem.

The medium article further suggested 56 Bitcoin Companies Approve Segwit-2Mb Combined Fork Planthe community is prepared to handle any growing pains as a cohesive whole that has proven technical compromises can be made in the most challenging and high-risk environments. The consensus article echoed this sentiment:

“We are also committed to the research and development of technical mechanisms to improve signaling in the bitcoin community, as well as to put in place communication tools, in order to more closely coordinate with ecosystem participants in the design, integration, and deployment of safe solutions that increase bitcoin capacity.”

Do you think this concludes the mining debate? Will Bitcoin be able to scale successfully? Let us know in the comments section below.

With additional reporting provided by Jamie Redman. 


Images courtesy of Shutterstock and segwit.co


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  • Liberty88

    Hammer DOWN !!!! 👍

  • justin

    get to it!

  • Us1xS

    PSht8GYJHfcWPer5!

  • 叶振东

    1, I can tell you, many people in China want me to be their emperor. 2, just now, I find two gentlemen in Africa, I want to be my people. 3, you do not know who you are. 4, only the father of Bitcoin Bitcoin has the power to make changes. 5, you simply do not understand the theory of Bitcoin.6, If you do that my captain will use his power.You will regret it. 7, my captain, I authorize you to master the basic information of these people. They will be responsible for failure.

  • Pangur Bán

    If true, the takers have won. Bitcoin will slowly die a socialist death. My miners will be pointing to a different coin. This solves nothing in the long run and is the announcement of the oligarchy of bitcoin. This is the creature of consensus island.

    • Blake Lucas

      Care to elaborate on what concerns you about this plan? Do you believe these companies are going to be able to manipulate the Bitcoin Economy the way the Central Banks have manipulated the current economy?

      • PBV

        I can’t speak for the original poster, but in a word, “Yes”.

        Segwit + 2MB does not solve the scaling problem, it just buys a very brief respite in light of the parabolic growth we are now seeing. Maintaining a hard-coded blocksize is poor programming practice and foolish if we’re going through the trouble and risk of a hard-fork.

        Within a year, we’ll be back to the same point, except with no economic incentive for the Core/Blockstream group to move forward with any future on-chain scaling. As a result, transactions will necessarily shift to the Tier 2 sidechains.

        Tier 2 sidechains are proprietary. They effectively represent the privatization of bitcoin. Over time, a handful of well-capitalized side chains will begin to dominate in the same way that Amazon and Alibaba increasingly dominate the online retail space. The well-capitalized side chains will offer better user experience, easier on-boarding, better point-of-sale equipment for merchants, etc. I expect at least one major bank will acquire one of the major sidechains.

        So, in the end, we will have the Goldman Sachs bitcoin lightning network and the Blockstream Bank / Chase lightning network and maybe the UBS/Euro lightning network. In between will be the shrinking miner business that will end up being acquired by someone, and a few legacy smaller sidechains looking for a buyer.

        It will be exciting. It will be lucrative (but like many lucrative endeavors, it will concentrate wealth rather than distribute it). Bitcoin will continue.

        But the dream will die.

        • Erik

          Seeing the same thing PBV, most dangerous part of it is allot of people will not see that their switching from a centralized fiat currency to crypto currency. I always try to inform people as much as I can about it.

          That is why I have been a proponent of DASH and it’s Governance masternodes tier 2 network.

          What do you think is the right solution or way to move forward ?

    • Leonidas

      You have achieved paranoid over reaction. We support your decision to shift from mining Gold to Coal. Best wishes!

  • Exciting times ahead! hahaha!

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  • Erik

    I think the most important part of this decision is that, it was able to move past, the grip of blockstream. Never before (to my knowledge has the core dev team been removed, from its central position of power, yes blockstream did an hostile inside take offer of bitcoin core, but this time is an external one)

    This all is a very nasty situation, but sidestepping blockstream is a step in the right direction.

  • Blaze Power

    Beware the CIA trojan horse may lurke. This is a bad idea. If it ain’t broke don’t fix it. Free market forces will prevail naturally, this is unnecessary & I smell a rat. “Harry Houdini was the greatest ventriloquist of all time, could make an elephant disappear on stage in front of 5,000 people & how did he do it? Misdirection, whats really going on here? You do not need to inflate the monetary supply. Unit value will increase with scarcity as the value increases this will ease the network burden naturally as unnecessary spending curtails cheap money stimulates philantropy. What you are doing is exactly what is wrong with the current fiat system. You are becoming that system now. If those goes through I am bailing out of Bitcoin!