On Nov. 16, major Bitcoin exchange and mining pool BTCC COO Samson Mow revealed that the institution Segregated Witness (SegWit) was ready. BTCC officially started to run the SegWit client on Nov. 17, supporting the on-chain scaling solution of the Bitcoin Core development team.
Cointelegraph reached out to Mow to learn more about BTCC’s stance on SegWit.
He told Cointelegraph:
“SegWit is great for Bitcoin. It brings more transaction throughput, fixes malleability, defrags the UTXO set, makes hardware wallets more secure and most importantly, it enables Lightning which will bring instant low cost Bitcoin transactions to the world. The team at BTCC have been working hard at making our exchange and mining pool services SegWit ready.”
Technical benefits of SegWit
Mow and the rest of the BTCC team acknowledge the technical benefits and advantages that SegWit brings to the network. It fixes transaction malleability, increases capacity of blocks, enables Lightning and enhances security measures of hardware wallets.
In an interview, Ledger CTO Nicolas Bacca similarly emphasized the positive impact SegWit will have on hardware wallets, noting that SegWit allows users to cryptographically sign input amounts of transaction, which solves one of the major issues with hardware wallets.
Rationale and motive of mining pools blocking SegWit activation
ViaBTC, a Bitcoin mining pool that holds just over eight percent in hashpower, has stated that the organization will do anything in its capability to block the activation of SegWit. Specifically, ViaBTC suggested that SegWit is a proposal submitted to stall blocksize increase, which Mow disagrees with completely.
Mow believes that by dismissing the technical benefits of SegWit and the effect it could have on the Bitcoin network and recklessly advocating for bigger blocks without necessary preparation and technological research, ViaBTC and other organizations attempting to block SegWit activation are encouraging politics in Bitcoin.
In a technical sense, SegWit is not a proposal designed to stall blocksize increase but to expand the capacity of the blocksize. As Mow explains, SegWit will lead to bigger blocks - 1.7 MB - which will allow the Bitcoin network to handle more transactions and avoid full blocks
“They can’t possibly want to scale Bitcoin, because SegWit will give them bigger blocks (1.7 MB) and on-chain scaling. They’re specifically asking for lines of code to be changed in inefficient ways when they don't even understand the protocol or tradeoffs. That’s just crazy,” Mow told Cointelegraph.
Will SegWit become activated?
Despite the efforts of some mining pools and individuals to stop SegWit activation, Mow hopes miners will come to realize SegWit’s benefits and make unbiased and fully informative decisions.
When it comes to important protocol changes, it is crucial to view the matter objectively and evaluate actual advantages a change could bring. While it is understandable to think that ViaBTC and other mining pools are opting for larger blocks, with or without increasing blocksize, SegWit will serve as a vital on-chain scaling solution.
“I hope others are aware of SegWit’s benefits and they make their own informed decisions. I think SegWit should be activated, along with many others in the community, but I also don’t think it’s a bad thing if we wait until there is clear consensus,” said Mow.
Let's block ads! (Why?)
Powered by Bitcoin Central