The Controversy Regarding A Proposed Scaling Solution

SegWit or Segregated Witness is a proposed scaling solution to effectively increase the capacity of bitcoin transaction blocks. The open source software will change how the space between transaction blocks is used instead of outright increase on the size of data blocks on the blockchain. Broad testing has been done by the core community including companies that currently operate on the bitcoin space. Recently, the core contributors had a face-to-face meeting in Zurich to perform hands on review.
SegWit proposal also seeks to upgrade and address issues like transaction malleability or the ability for the transaction ID’s to be changed prior to confirmation by the bitcoin mining network. If the initial code for SegWit will be merged with master branch of the bitcoin codebase, a new phase of testing can start to provide more opportunities for stress testing the upgrade and identifying any existing bugs. Developers state that they will enable testing in conjunction with the rest of the features of the bitcoin code.
Meanwhile the process of moving SegWit for testing is full of controversy. According to advocates who want an increase in the size of transaction blocks on the bitcoin network, SegWit is too complex to scale the system. Recent comments from the Chinese mining community reveal a possible adoption of network hard folk of their own.
In some ways, SegWit can be considered as a step to the future proposed changes to bitcoin code. Developers will be given the opportunity to add functionality to the code and SegWit can dovetail into the other aspects of bitcoin development including the proposal to reduce network block propagation times. However, the proposal is very likely to draw criticism from other core detractors who are resistant to change.
On the other hand, Bitcoin miners are fighting for survival because the rewards have been reduced by half. Instead of 25 bitcoins that are up for grabs all over the world, the number has been reduced to 12.5. While halving every four years has been incorporated into bitcoin’s rulebook, Bitcoin miners have to make their operations more efficient and cost effective to survive the ongoing profit hit.

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