Wednesday, September 6, 2017

The "bitcoin boy" is siding with what should be

The split within bitcoin , original bitcoin and the bitcoin cash had produced some indecisions on what do you expect to happen with bitcoin , given that there was already a split . 

Where do you concentrate between the two. So for me to understand what is happening a more thorough understanding on why the split had happened would lead us more to the technical know how about this new technology. Andreas Antonopolous the bitcoin boy is highly reliable about this matter. Watch his explanation about the scaling , segwit and concensus. He is not siding with any of the two, he is for where bitcoin should be and predicts what would happen again. 

This video was posted on you tube before the split and Andreas already know what will happen. Important points on Andreas explanations ; 

1. Bitcoin has the ability to "fork" meaning to split, partition in two because if you have ten thousand computers in the world
and there is a disagreement. you have to split temporary and come back again to agree. Bitcon does this, this happens within bitcoin and nobody notice this. 

2. There is a different kind of  fork , when rules change or part of the network change the rules . How big is the block today there is a rule that the block should be 1 meg , thats it every 10 minutes 1 meg, 6 blocks an hour, 144 megs a day and thats it.  Tthe capacity of the transaction and that causes the fees and the capacity  issues.  That some people wants to change the rules , how about 2 meg,  4 meg or 8 meg or what ever. 

3. But in order to that , there is a need to convince everyone or there they end up splitting the network so they will do there own bitcoin . which has different set of rules and different from the original bitcoin which has its set of rules. There is such a thing called "consensus fork" 

4. There is an ongoing scaling  debate for the last two years , which was "how to make bitcoin" to  support of more transactions? The difficulty is giving more power to some participants than  others , that is why giving it free and more open . decentralized,  while doing more transactions is the "hard question"  So we have to make it free , open but a lot of people dont want that kind of answers. So they are not willing to do that, so that was the debate ?

5. There are three on going proposals , one segregated witness which means to restructure transactions in such a way to have two parts of the transaction one who has to contain the signatures and the other one contains everything else , this will necessary increase the space by about 1.7 meg , almost twice the space in the transactions. 

The alternative proposal was just to increase the block size by  2 meg and the the third proposal was to do both 
transactions was to do both which was called segwit 2x . the first was to do segwit , then 3 months after increase the size of the block by about 2 megabytes .  Those are competing proposals and the latest competition works that everybody gets the software to choose in one specific software for the proposals  Then depending on the number of people running the different set of rules at the end of the day there might be some problems. 

At this plays out , we will be having a failing eventful  85% of the people will change the rules on July and August will have segwit activated then transactions will contunue . There is a small possibility that there would be a small chain 10, 15 who will disagree and they will have a separate bitcoin . And if that happens , remember this if you have a wallet that controls your bitcoin , meaning you control your keys not the money in an exchange which you dont have control on your own keys or wallet.  

After the fork , you should be controlling your bitcoin on both sides . Now you have bitcoin Alpha and bitcoin Beta and then you could keep to both or sell one or buy the other or whatever you want.  Or you do nothing , just watch the development in a matter of days . The important thing is that you must control your own bitcoins. 

If you have put your bitcoins on exchanges then you dont control your bitcoins . Bitcoin is about individual participation on controlling the system not trusting somebody elses your money . So when you trust your money to someone else this is banking, where the possibility of these people running the bank runs with your money. They have the tendency to do that .  Bitcoin is not like that you hold your own money and if you give your money thru an exchange you give them the chance to hold your money then there is a chance they will run away with your money. 

In finality Andreas says that this disagreement about bitcoin continues because this is a new system where there is no one controlling the system, its a free and open system where the consensus rules. Rules on bitcoin was there is always forking but then there will be agreements because there is a consensus rule, so there could be disagreements but there will be a time for agreements. 

This is part of a talk which took place on July 7th 2017 at a Bloktex event hosted by the Wisma BeeOn Group in Kuala Lumpur, Malaysia: RELATED: Scaling is a moving target - Forkology: A Study of Forks for Newbies - Fee markets, SegWit, and scaling - What happens to our bitcoins during a hard fork? - Rules vs. Rulers - Does Lightning need SegWit? - The revolution in trust - Altcoins and the scaling debate - Governance trade-offs in decentralised systems - Ethereum: Lessons from the hard fork - Is Bitcoin a democracy? - Bitmain and the ASICBoost allegations - Unlimited vs. Cypherpunks - Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin. Follow on Twitter: @aantonop Website: He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. THE INTERNET OF MONEY, v1: MASTERING BITCOIN: [NEW] MASTERING BITCOIN, 2nd Edition:

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