Bitcoin avoids split into two blockchains

Digital currency bitcoin on Friday averted a split into two currencies after its network supported an upgrade to its software that would enhance its ability to process an increasing number of transactions.


BEAM Team

23 Jul, 2017

Bitcoin avoids split into two blockchains | BEAMSTART News

- From our Sponsors -

Digital currency bitcoin on Friday averted a split into two currencies after its network supported an upgrade to its software that would enhance its ability to process an increasing number of transactions.

Bitcoin’s miners have signaled their support for the so-called Bitcoin Improvement Proposal (BIP) 91, avoiding a split of bitcoin into two blockchains. The miners represent a network of computer operators who secure the blockchain or a public ledger of all bitcoin transactions

Related: You can now raise money on BEAM

BIP 91 is the first step toward a larger effort to upgrade bitcoin through a software called SegWit2x. On Friday, the support for BIP 91 reached nearly 100 percent, exceeding the required threshold of 80 percent, according to analysts and market participants.

Some investors have warmed to bitcoin, wooed by its explosive performance and potential to compete with gold and government-issued money as a means to store value. Demand for bitcoin has grown in eight years to a market capitalization of more than $40 billion.

But fears about the bitcoin split dampened demand for bitcoin in recent weeks. After hitting record high near $3,000, bitcoin dropped as low $1,830 BTC=BTSP on the Bitstamp platform. On Friday, it traded at $2,647.

The software upgrade attempts to address the bitcoin network’s limitations in processing millions of daily transactions. Bitcoin’s network has not kept pace with its growth and is unable to process all the transactions fast enough.

“BIP 91 unleashes the next wave of innovation because it has been a little bit stagnant of late for bitcoin,” said Rob Viglione, co-founder of ZenCash, a digital coin focused on privacy and security.

Before BIP 91’s endorsement, some bitcoin investors feared it could split into two independent currencies because core developers of the network and the miners each wanted different ways to increase bitcoin’s scale.

Related: You can now find jobs on BEAM

A compromise between the two groups has been reached through SegWit2x.

“Bitcoin now has a clear run to add features that allow for faster transactions with lower costs,” said Charles Hayter, chief executive officer of digital currency analytics firm Cryptocompare.

The upgrade to bitcoin’s network will not occur until autumn, said Viglione, because several things need to happen before the new software is activated.

Market participants have complained about the delay in transactions. Analysts say a single bitcoin transaction costs on average 83 U.S. cents to execute, which means micropayments are not feasible on the network.

The network is also limited to roughly seven transactions per second. In comparison, Visa on average handles 2,000 transactions per second.

Related:

- From our Sponsors -

Latest Jobs

Product Management Intern

dili

New York,

Internship

USD 25 yearly

Founding Deployment Strategist

Closure

California,

Full Time

USD 130 — USD 195 yearly

Sales Development Representative (SDR)

Storylane

California,

Full Time

USD 90000 — USD 120000 yearly

Front-End Development Intern

Andson Biotech

Georgia,

Internship

USD 25 yearly

Security & Compliance Lead

Glimpse

New York,

Full Time

USD 150000 — USD 225000 yearly

Data Scientist

Metriport

California,

Full Time

USD 160000 — USD 190000 yearly

SDR / Appointment Setter, Positive Reply Follow-Up

Retell AI

California,

Contract

USD 6000 — USD 9000 yearly

Senior Sales Development Representative

TrueBiz

Full Time

USD 90000 — USD 150000 yearly

Full Stack Engineer - Remote

erad

Full Time

USD 1000 — USD 2000 yearly

BEAMSTART is a hub for everything Startups, Entrepreneurship, and Innovation. Connect with a global community of people, and stay updated with the latest startup jobs, news, and discussions.

 
© 2016 - 2026 BEAMSTART. All Rights Reserved (Legal).