However, Bitcoin blockchain limitation options are a source of much discussion in the cyber currency world. Bitcoin suffers from an issue that has been annoying many users. This involves how the Bitcoin blockchain operates. The Bitcoin blockchain is a ledger of past transactions made using specific Bitcoins. This ledger ensures that Bitcoins that have been used are recorded, so they cannot be used again.
However, there is a limitation in how the Bitcoin blockchain operates that tends to slow up transactions as Bitcoin becomes more popular. The limitation relates to the data storage capacity of each block in the chain. Only one megabyte of data can be added every 10 minutes. However, a megabyte is no longer a lot in the Bitcoin world.
Block capacity can be rapidly fill up when Bitcoin usage is brisk, slowing new transactions. This may have been OK when Bitcoin was a relatively new phenomenon, but not now! As the use of Bitcoins increases, the speed of new transactions significantly slows up. The result is that some users can wait several days for their transaction to be completed.
The reason given for the limitation is that it helps prevent the likelihood of cyber attacks on the currency. However, not all users are happy with this, and the uptake of this cyber currency is now straining the system.
Two possible Bitcoin blockchain limitation options have been proposed. Each is a potential solution to the problem:
Miners preferred the first plan. Miners are those that provide computer processing power and maintain the block chain in exchange for the possibility of receiving new Bitcoins. Developers, on the other hand, generally preferred plan 2. This impasse appeared to have been resolved with a compromise solution, referred to as the Segwit2x initiative.
Under the Segwit2x initiative, the solution would be applied in two steps. The first, to take place in August, would take the form of proposal 2: the Bitcoin Initiative Proposal 91, known as BIP 91. This is the data-splitting step where some data is switched to a second file. The second step, option 1, would be initiated in November. This would involve an increase in block size from 1 MB to 2 MB. So both proposed solutions would be implemented.
Under the terms of a related scheme – referred to as Bitcoin Improvement Proposal 91 (BIP 91) – the first step would only happen if 80% of the mining effort adopted the new blockchain software required and used it consistently between 21 July and 31 July. 90% of Bitcoin miners appeared to agree with BIP 91, but has the problem genuinely been resolved?
Will either of these Bitcoin blockchain limitation options be implemented? Time will tell, although another player has entered the arena. Referred to as Bitcoin Cash, we shall report on this once more information becomes available. For now, it’s a matter of hearsay and possibility.
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