Mining Pools Activate SegWit2x Early

Blockchain, FinTech, Group, Investing, News | July 18, 2017 By:

Bitcoin mining pools are already activating SegWit2x, a show of support for the scaling proposal in advance of the official Aug. 1 changeover.

Most miners were not expected to start signaling for SegWit2x until July 21. However, the official release of the software over the weekend saw such large entities as BitClub, AntPool, BTC.com, Bixin, and BitFury already in, with Slush Pool indicating it will activate soon. An estimated 43% of bitcoin mining power is signaling for the change to expanded blocks.

In order to lock-in the update, 80% of miners need to signal support for the change using a code proposal called BIP91. If that magic 80% is reached within the next 336 blocks, the SegWit2x will lock-in.

Not everyone is on board with the changeover. BIP148’s user-activated soft fork is one alternative that has support. The change indicates no support for SegWit2x, which would result in a split of bitcoin. BIP148 proposes that miners upgrade to a version of SegWit that has been running since last November on some blocks. BIP 148 nodes will reject blocks that do not signal the upgrade created by building blocks with a “bit 1” signal.

If there is a split, bitcoin holders will be split into BTC and BCC camps. High volatility in trading is expected around the August 1 changeover.