Mike Belshe has revealed that Bitcoin’s upcoming Segwit2x fork scheduled for mid-November has been canceled due to a lack of community support.
Bitcoin was due to experience its most turbulent hard fork yet come mid-November in the form of SegWit2x, and now Bitgo CEO Mike Belshe has revealed that the contentious move will not go ahead thanks to a lack of community support.
The holistic SegWit2x proposal would have upgraded Bitcoin’s blockchain network in two different ways; the proposal would have introduced Segregated Witness – a means to alter how information is stored on the Bitcoin blockchain – and would secondly have increased the network’s block size to two megabytes, up from one megabyte.
Segregated Witness was activated in August this year, while the blocksize upgrade was instead scheduled for mid-November.
The plan drew intense controversy in the Bitcoin community – larger mining pools, startups, and several developers supported the plan, while opposition was drawn from several businesses, operators, users, and Bitcoin Core developers.
In a blog post, Belshe elaborated on the decision to suspend the planned fork – quipping that “The Segwit2x effort began in May with a simple purpose: to increase the blocksize and improve Bitcoin scalability. At the time, the Bitcoin community was in crisis after nearly 3 years of heavy debate, and consensus for Segwit seemed like a distant mirage with only 30% support among miners… Segwit2x found its first success in August, as it broke the deadlock and quickly led to Segwit’s successful activation.”
“Our goal has always been a smooth upgrade for Bitcoin.”, Belshe continued. “Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together.” Belshe concedes “it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.”
As one might imagine, markets reacted in frenzy – at the time of the announcement, Bitcoin saw a spike in value that roared to nearly a $500 USD growth in the period of one hour, prior to settling back into the $7300 USD range.
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