Bitcoin prices have increased 25% in last couple of days because the “split” of cryptocurrency is narrowly avoided.
What was the Issue: One of the issues being discussed recently – how to increase the number of transactions that can be processed on the network.
What are the proposals: To fix the issue – one of the proposals known as Bitcoin Improvement Proposal 148 (BIP 148) was discussed and that would lead to a split in the cryptocurrency in Aug 2017.
However, the bitcoin miners are showing interest on another proposal – BIP 91 that would avoid the so-called “hard fork” by stopping short of altering the hard-coded limit on transaction capacities that is the bone of contention within the bitcoin world, while offering slightly enlarged transaction capacity.
Is it finalised now
The threshold for activating BIP 91 is 80% of all the processing power on the bitcoin network and this was achieved on July 21. Currently 97% of the processing power on the network, which is largely controlled by miners, is voting in favour of BIP 91.
However, just signalling the support is not sufficient. Now, they must run run the software that implements this proposal within the next two and a half days. Failure to maintain a simple majority of the processing power, also called the hash rate, would mean BIP 91 does not activate.
Some Technical Stuff
Following things need to happen for it to activate BIP 91:
- There will be a 336-block “grace period,” taking about two and a half days, during which miners have time to prepare for activation.
- BIP 91 will activate at block 477,120. Theoretically, mining pools will start rejecting blocks that do not signal support for SegWit (BIP 141). In this way, BIP 91 is a “coordination mechanism” that gets other mining pools to follow along or lose out on mining rewards.