In spite of all the exploits of Bitcoin particularly in latest months, which has seen its price reach new highs and its consumer base growth, one main issue that has persisted upon the cryptocurrency is congestion. The problem of congestion in the Bitcoin community has persisted for a while now. The discussion on how best to solve this problem has seen the community split majorly into factions, a situation which may be judged as evidence that the power actually lies with the people within the decentralized democratic surroundings of Bitcoin.
Emiel Sebastiaan van der Hoek said:
“The community is split for suitable motive. Neither solution will solve scalability problems nor transaction fee troubles of Bitcoin in my honest opinion.”
To start with introduced by Bitcoin core and Blockstream developer, Dr. Pieter Wuille, at the Scaling Bitcoin convention in Hong Kong in December of 2015, Segregated Witness is designed to divide signature information from Bitcoin transactions. That is claimed to have benefits that consist of a malleability fix, programmability that is more flexible and an effective block size limit growth. However, Bitcoin unlimited is a full node software customer for the Bitcoin network. In comparison with to the Bitcoin core consumer difficult-coding the block size limit to one megabyte, from which it is forked, Bitcoin unlimited eliminates the restriction, permitting the customers to determine the block size by consensus.
Almost one week after the time of writing, a few main stakeholders in the Bitcoin environment made their assist for Bitcoin unlimited public. These stakeholders include Roger Ver, who launched his new Bitcoin mining pool on Bitcoin unlimited and famous Antpool that noted its plan to replace to Bitcoin unlimited, shortly after which the Bitcoin unlimited system experienced an assault which introduced a bug to light and the numbers of “nodes” hosting unlimited fell to about 300 from 800 following the assaults.
These developments are proving to be of issue to customers of Bitcoin as transaction confirmation times keeps growing, the same with transaction fees. Although, people in the Bitcoin environment might maintain their desire or none among any of the thus far available options in solving the persisting issue of congestion.
Biser Dimitrov, technology & business development executive, highlights the advantages and none of the given systems while providing his assist for Segregated Witness.
Biser Dimitrov said:
I am cautiously observing how each ideas are gaining traction and assist during the last month. Segregated Witness got a lot of media coverage and some serious mining offerings are standing behind it.”
Kangmo Kim, the chief executive Officer at ScaleChain, does not see any of the alternatives as an approach to the scalability problem of Bitcoin. In step with Kim, these may just be temporary fixes to permit more transactions in the block. Kangmo Kim explains that Segregated Witness attempts to reduce the extra space but Bitcoin unlimited does not. The results of any of these proffered solutions in keeping with Kim is that Bitcoin transaction costs will drop within the short-term but will grow over time and transactions that could offer better fees can be included within the block, and with time, Bitcoin will not be able to accept micro transactions.
Kangmo Kim said:
“Ultimately, most of the transactions in Bitcoin blocks can be transactions moving huge quantities of Bitcoin so that it could endure high transaction fee. For instance, when you purchase a Tesla, you can use Bitcoin in the future as you can pay 0.1 BTC as your fee. However, it does not make sense to pay your coffee whose price is much less than the fee 0.1 BTC.”
Chief technology Officer at Blockchain Foundry Inc., Jagdeep Sidhu, expressed his assist for Segregated Witnesses because the technique does not contain having to hard fork. Sidhu says that a consensus-driven method is much more likely to cause further adoption of the Blockchain, which is concept of as an immutable ledger not receptive to external forces. He goes on to state that changing the underpinning design which invalidates all customers on the network at this point undermines the idea of Blockchains and Bitcoins in general and therefore leaves customers with better alternatives, aka central bank rate focused on mechanisms to obtain more perfect money as John Nash argued.
Another motive that Sidhu noted is the fact that Segregated Witness will permit for exciting tendencies within the way of scalability whilst schnorr signatures can be the next thing to be soft-forked in by Dr. Peter Wuille, which will permit for aggregation of signatures without sacrificing security to create smaller footprints on transactions and greater multi signature use instances, and lightning networks may also assist with off chain transactions similarly increasing scaling.
Jagdeep Sidhu said:
“A hard fork design is thought to be more complex than initially assumed and a thorough analysis of consensus systems which fork protocols has not been done to date. Soft-fork is the easy implementation that avoids and game theoretical assaults that hard forks might be vulnerable to.”