Bitcoin prices stabilized, but the test is just beginning

In recent days, the dark has long been the encryption digital asset market ushered in the long sunny days. OKCoin currency line data show that since July 17th, bitcoin ushered in 6 even up, 21 is the highest, reaching a high of 19800 yuan.

In an efficient market, most valuable information has been reflected in the K-line trend. Bitcoin ｏｒ the encrypted digital asset market, bitcoin bifurcation risk is an important fuse the crash, and the recent rebound is largely in the BIP91 program began to be recognized by the mainstream of miners, in the short term, bitcoin bifurcation of the ａｌｅｒｔ to be lifted.

However, the alarm has not been completely removed, BIP91 successful activation within 3 months will usher in 2M block expansion of the hard fork, then, the real test is really coming.

What's the test? The tough test of bitcoin blockchain, if because of several conflicts of interest have said bifurcation bifurcation, bitcoin is not very popular bitcoin, its value will inevitably be a serious damage, is we want to see the results.

So the test of bitcoin is only just beginning.

Where is the risk of a block chain bifurcation?

For most investors, block chaining is still a strange word. As the name suggests, the so-called bifurcation, is originally a block chain split into two ｏｒ more blocks in the block chain chain, is the record of bitcoin transactions public books, since there are multiple block chain, means that there are a number of different versions of the bitcoin books, naturally as the emergence of a variety of bitcoin.

Just like the etheric square, because of the hard branching of the TheDao event, the result is divided into two block chains, and two ETH and ETC coins appear.

How do the chain branches of the block arise?

Start with the consensus mechanism of block chain. As we all know, block chain is a point to point to the center node common maintenance, no authority here can say, the orderly operation of the blockchain rely on consensus, for which transactions are acceptable, with which nodes account right key issues, a set of recognized standard. This set of standards is deployed automatically in block chain underlying protocols.

The question is, when the different versions of the underlying protocol node running block in the chain, inconsistency may appear consensus mechanism, namely some blocks, some nodes considered regular, agreed to access block chain, and some nodes that do not conform with the rules, refused to admit. At this point, when the node does not ｕｐｄａｔｅ the underlying protocol to keep it consistent, naturally, the block chain splits into two ｏｒ more bars.

Some people have asked why the nodes run different versions of the underlying protocol Is it all right if everyone updates in time? Looks like a simple problem of updating software in time, but it's not.

One is that the block chain is a decentralized network operation pattern, and each node is scattered around theworld. At different time zones, and some continued online, some often offline nodes at the same time to ｕｐｄａｔｅ all is impossible, therefore, the blockchain protocol upgrade almost inevitably block chain bifurcation; and the two is based on various factors into account, some node is opposed to upgrade it is the root cause of the bifurcation of the long chain block.

As for why some nodes will oppose it? It's not difficult to understand. In a business society, it is impossible for us to agree 100 percent of an idea ｏｒ to recognize an upgrade. Sometimes, if there is a serious conflict of interest, it will be normal to split up into two ｏｒ more factions. Unfortunately, there are serious conflicts in the community when the underlying protocol is upgraded.

Conflicts of interest and temporary compromises

The author has mentioned in the previous article that the current core protocol of bitcoin block chain has some limitations, which has seriously restricted the development and prosperity of bitcoin. One is the block size limit, the current bitcoin block size is 1M per second, can only handle 7 transactions, lags behind the development needs; two is the poor expansibility bitcoin blockchain, innovation and application of complex difficult to deploy.

As far as the conflict is concerned, the focus is on the expansion of blocks. Expansion of the block has become a consensus, but how to expand the parties there are different views.

The miners' ideal scheme

As far as the miners are concerned, they want to directly release the restrictions on blocks, and successively put forward different expansion schemes, such as 8M, 4M, 2M and so on.

Bitcoin Core team expressed opposition, whether it is upgraded to 2M ｏｒ 8M, with the popularity of bitcoin trading, one day is still not enough, which means expansion. The block is larger, the higher requirements for capacity calculation, means fewer nodes have the ability to run the whole node block chain, then is easy to cause the center of force and the monopoly, which can only be maintained by the chain block several large pool.

The ideal for the Core team

The Core team hopes to deploy, witness SegWit (Segregated Witness) isolated, through the separation transaction information and authentication information, when the data is removed, to make more trading space, so that the entire transaction throughput of the bitcoin network increases, the expansion effect of block to disguise. After the deployment of isolation witness, the follow-up can also introduce lightning network, will move small transactions from the block chain, block chain only assume the ultimate liquidation function, greatly reducing the ｌｏａｄ chain block.

The miners objected. Isolation witness, lightning network, ｏｒ whatever, will be the root