With the emergence of technology over the years there have been many new ways to pay other people either through apps or online. In the past, it was all about trading animals and other products as payments. Then methods of payment switched over to cash and checks. Now checks are becoming less common as apps and smartphones can send money to someone across the globe in a matter of minutes. It is fast and much more secure.
Bitcoin is a new form of payment that is created and used online. No one necessarily controls it because it never hits paper. It is all safely stored online. Bitcoin is produced by people and are are starting to peak the interest of businesses.
In recent news, there is a mystery miner guy that could play a big role in determining the future of Bitcoin. There has been much debate around the globe about how to expand the reach of Bitcoin. There has to be a better way to scale out the transaction capacity. Searching for new solutions has been delaying the growth of Bitcoin.
The slow growth in progress for Bitcoin has hurt the business community in several ways. Many of the companies impacted by Bitcoins slow growth rely on technical improvements to keep growing. Bitcoin’s main development group has a group of detractors. A large number of startups and service providers that have invested time and money in Bitcoin will continue to support its efforts.
If the bitcoin mining pool will work well, then another new solution may be unnecessary. So far China’s ViaBTC has been one of the biggest supporters and providers for a mining software that will help change a clients status from official version provided by Bitcoin Core to Bitcoin Unlimited. The unlimited status is part of a competing group that supports other methods of scaling and continues to focus its efforts on a changeable bitcoin block size.
In comparison to the basic bitcoin software, Bitcoin Unlimited does not receive and support for developer group’s greatest scaling solution, Segregated Witness. This solution is a technical advancement that would make bitcoin’s block size about 1.8 times larger than its current size.
During the fall months of 2015, Bitcoin Unlimited was developed all that all individual node operator and miners involved could pick a block size that they prefer instead of being forced to abide by the size limit put in place by bitcoin’s executives. The claims made stated the problem with Bitcoin Unlimited relates to the blocks using up data too fast pasts its limits. That in turn causes an overall slower transaction processing time. In addition, fees are rising and that is prohibiting the bitcoin program to grow.
In order to successfully change the bitcoin block size there needs to be a hard fork. That has not been working well for Bitcoin Core. Getting a hard fork is not necessarily easy. There are several problems involved. With hard fork pairs of blockchains with dissimilar standards are built. Bitcoin miners and node operators have the power to choose their best option.
If there is no new software available to upgrade the system then a node is cut off from being part of the system. Segregated Witness is different because it uses a soft fork. That means nodes will still be connected to the system even if there is no recent upgrade. You would just not be able to broadcast the information without the most recent update.