While the traders, market and investors gained believe and confidence on Bitcoins scaling potential, for the second time this week Bitcoin price flew past and over $2860 point, on the 20th and 22nd of July.
According to the CEO of the leading Chinese bitcoin exchange BTCC, Bobby Lee – announced that
“over 95 percent of blocks mined by major mining pools including Antpool, Bitfury, Bitcoin.com F2Poo, ViaBTC and Slush Pool have all signaled for the activation of the Bitcoin Core development team’s transaction malleability fix and scaling solution Segregated Witness (Segwit).”
A Solution Between the Original Segwit proposition BIP 141 and Segwit2x
Starting off, the mighty mining pool – Antpool as a leader together with the bitcoin mining community pushed for the activation of Segwit2x to be used as a solution that would activate Segwit as it initiates a hard fork to raise the block size to 2 MB.
On the other side, many analyst along with Bitcoin Core development team pointed their finger to the codebase of Segwit2x as it was not ready and not verified until its deadline. So, the conclusion as the best opportunity to evade a chain split, was to activate BIP 91, an in-between solving idea as to the original Segwit proposal BIP 141 and Segwit2x.
After the market crash as it was the time when Bitcoin dropped around $1000 in price, to be more precise on July 16, with the activation of BIP 91 the price increased from $1,850 to $2,350 as it hit 80 percentage points has rate.
On July 20, Bitcoin kept going up as it climbed and broke the $2860 mark with a market cap of $47,13 billion for the first time after the total market low stand. It kept it position strong on the next day – July 21, as its value fluctuated around $2700.
The confidence in the community as a total turned out hoisting the price in a 5-day period up for $800. The Second time it hit above $2860 mark was on July 22 while there are signs of an optimistic continuation.
The Bitcoin price Up-ward trend?
Well-known and respected Bitcoin Core developer Peter Todd shared his thoughts on the lock-in of BIP 91 with the community as he believed that there is a 25% chance fail rate on the attempt to signal Bit 1, which is a requirement for the BIP 91 Segwit activation function.
To be able to fully lock-in BIP 91 by signaling it in blocks and signal Bit 1 in their blocks to activate Segwit, miners have to go past and over the 80 percentage point hashrate activation.
“The reason why I think it’s [probability of Segwit not being activated] as high a chance as 25% is because there’s a few ways to renegotiate on segwit with plausible deniability. For instance, miners could “accidentally” mine a bunch of BIP-91 invalid blocks – e.g. claiming it was due to validationless spy-mining – and then decide not to reorganize out those blocks. At that point, the BIP-91 rules have been broken, but lots of transactions depend on them, so the whole thing gets called off with vague mutterings of “we’ll try again once we upgrade our systems” or “well obviously soft-forks are just too dangerous!,” said Todd.
As mentioned in the beginning, these worries that Todd had – became more unlikely as Bobby Lee the BTCC CEO announced that 95 percentage of the miners and their blocks have signaled Bit 1 and BIP 141. This case was welcoming as Todd also supported that BIP is the safest method of activation Segwit.
“Update about #SegWit: In the last 24 hours, we now have *OVER* 95% of all #bitcoin mining hashpower signaling for #BIP141 Activaion coming!”
On the other hand, famous and respected developers also bitcoin hardware architect Mark “Slush” Palatinus marked that BIP 91 would be to rushed and there were stability issues:
“BIP 91 is too rushed. Serious stability fixes at last moment. We’re doing our best to deploy on time & responsibly to not endanger network,” said Marek “Slush” Palatinus.
But right as of the moment, miners are signaling BIP 141 and Bit 1 with the sole purpose of activating Segwit the right way as fast as possible. It is believed that when it is activated Bitcoin price will climb over the last all-time high of $3,095 and go even further.