BIP 91 and the Future of Bitcoin
The BIP 91 or the Bitcoin Improvement Proposal 91 is now in place.
But what is the BIP 91 and should you be concerned about it?
Bitcoin and its limited transaction blocks have been a concern for traders, miners and normal users alike. Even though the number of miners keeps increasing and we have more and more people to do the job, the bitcoin transactions keep backlogging up. While it is certainly safer and more secure than any other coin, the system had limitations.
This is where the BIP 91 comes in. It is an update to the Bitcoin blockchain that aims to increase the cap on the data limit that is stored in the transactions blocks. It is part of a wider effort called Segwit2x to update the bitcoin that sometimes lags behinds in transactions to its pseudo competitors like Litecoin, Ripple and Ethereum.
Bitcoin miners were the first ones who pushed this update because they are the ones who made all the effort for the transactions and the block data limit just made their lives difficult. Within the same day of launch, the miners now say that they are going to upgrade the code for 269 blocks. They have collectively received the BIP 91 as it makes their jobs much easier.
In response to the BIP 91 update, some critics had spoken against the update. They believed that Bitcoin users cannot be trusted to keep their word about the update. If more than 50% of the operators and miners don’t convert to the new BIP 91 software, there is a chance that Segwit couldn’t go through as planned. It can causing plenty of hiccups for the number one cryptocurrency on the market. Several respected developers and operators share this opinion and are skeptical of whether the user base will adapt or not.
However, the lock in of BIP 91 has been at the top priority of the mining pools for some time. They have been working round the clock to ensure that BIP 91 proceeds according to plan. Many also hope that it succeeds just so that more aggressive maneuvers like the BIP 148 would be superseded by the network. The BIP 91 is much simpler and only relies on the existing mining pools only.
There is also a grace period for 336 blocks covering about two and a half days during which miners will have time to prepare for the activation. It will theoretically be activated at block 477,120. So, nice and smooth.
The BIP 91 activations has resulted in a sharp price increase of bitcoin value last thursday. Some developers are calling it the new dawn of Bitcoin. We will have to wait and see whether it is true but so far so good!
Does this mean it’s time to invest in Bitcoin and other cryptocurrencies before the price possibly increases? If you need help buying virtual currencies, get in touch today, we’d love to help.