F2Pool Deals Possible Death Blow to SegWit2x Fork, Withdraws Support
BitGo engineer Jameson Lopp jubilantly posted to Twitter this morning that Bitcoin mining pool F2Pool has stopped signalling for SegWit2x.
— Jameson Lopp (@lopp) October 12, 2017
Why does it matter?
According to CoinDance, F2Pool at the moment mines 10% of the blocks on the Bitcoin community. As of yesterday, 95% of Bitcoin miners have been signalling their help of the controversial fork, so with the lack of F2Pool’s 10%, Lopp’s numbers add up.
SegWit2x was (or is) going to be a contentious laborious fork, supported by near-unanimously by miners however opposed vehemently by Bitcoin’s Core growth staff and plenty of customers, exchanges, and companies. With the lack of F2Pool, 85% of miners are nonetheless signalling their help to SegWit2x, however F2Pool’s defection triples the hash energy of the “NO2X” miners.
While it was seemingly that with 95% mining consensus the laborious fork would have been profitable, it could have precipitated monumental confusion locally over which Bitcoin was the actual Bitcoin. The lack of F2Pool’s help makes the SegWit2x laborious fork a lot much less seemingly to happen.
What is SegWit2x?
SegWit2x is a compromise to finish the scalability disaster, and was agreed upon on the Consensus convention in New York again in May. Spearheaded by Barry Silbert’s Digital Currency Group, the attendees signed the “New York Agreement” which paved the best way for the August activation of Segregated Witness (SegWit) and a follow-on November laborious fork to double the block measurement.
Bitcoin’s Core growth staff got here out strongly towards the “2x” a part of the plan, and at a current Bitcoin convention, many attendees wore “NO2X” buttons. A tough fork to double the block measurement can be of minimal worth when it comes to scaling, and the danger of a sequence break up is unacceptably excessive when attempting to improve such an enormous community as Bitcoin’s. Core and plenty of others didn’t consider it was well worth the threat.
The SegWit2x laborious fork should occur; 85% help from miners is probably going sufficient to push it by means of. However, the tide appears to be turning. Not way back, one of many New York Agreement signatories, Bitwala, backed out of the settlement. They have been adopted shortly thereafter by Vaultoro, one other signatory. F2Pool additionally signed the New York Agreement, and their withdrawal at present is the most important defection by far.
Exchanges have additionally been stepping up and discussing plans for dealing with the fork, ought to it happen. Bitfinex recently made headlines by saying it could proceed to name the legacy chain “BTC,” indicating help for Core’s facet of any fork that may occur.
Further defections will nearly definitely kill the SegWit2x plan, which is probably good for Bitcoin within the brief time period because it removes a sword of Damocles dangling over the top of the group. Nonetheless, it has been speculated that over the long run, so many corporations going again on their phrase might be dangerous for the Bitcoin ecosystem because it reduces belief between the community’s contributors.