Mining of cryptocurrencies are becoming one of the most profitable activities among the people all around the world. More and more users every day are launching to different Block chains and multiple the number of coins. In addition, sometimes it seems that Bitcoin or Etherum are infinite sources of the wealth for everyone.
Cryptocurrencies are becoming an example of cornucopia in modern technologies. However, not everything is so positive andpromisingwith the near future of any cryptocurrency. There are several problems that interfere it to scale and become a real revolution in world economy. Moreover, the decisions are not giving all answers to the users and the situation can cause worse problems than simple rejection by major part of society of any cryptocurrency. That is why appearing the questions of what is segwit wallet, what is segwit2x, what will segwit do to bitcoin and so on. However, the way to understand it we should discover more detail about cryptocurrency and the way it works.
Modern technologies are surrounding us everywhere in civilized countries. Lifestyle of yesterday is old and uncomfortable today. The speed of changing is so high that we can even not to mention and analyse them properly. The same situation is with Bitcoin and any other cryptocurrency. It is difficult to find a man or a woman who has never heard about Bitcoin. However, it is difficult to find person who really knows a lot about the bitcoin segwit2x or segwit bitcoin. The problems of using of the cryptocurrency and the danger for the ordinary people are alsoobscurefor that major part of society in any state. Nevertheless, the problems of cryptocurrencies are worse with the relationships with government. It is because any authority in time will be put to restwith the fact of side emission of currency and the perspectives are not getting better for the Bitcoin and others.
However, to avoid the cryptocurrency as a fact that does not matter is irresponsible andbat-eyed,despite the attitude to it. In addition, to deal with it means to know the principles of work. Any cryptocurrency is chain of blocks with special information that is required in any type of it. Mining a block takes a time and the power. After the creating one, you create the second and make the chain. In time by executing you rea achieving coins that are the aim of such kind of activity. Sounds easy and profitable – tens of thousands of dollars for nothing! Just some skills and powerful equipment for mining. However, in time this easy way to the wealth are becoming more and more difficult and unintelligiblyfor the users. The investors, who are not profound in cryptocurrency business, do not understand the reasons of falling of the price and deceleration of transactions inside the programs.
The answer is not so difficult, but the implementing of decision is not easy. The problem is that most part of crypto coins are limited in size. In example in bitcoin, it is 1 megabyte. The limitation allowed to improve the network node compatibility, as well as to reduce the effectiveness of DDoS attacks, but reduced the network’s maximum bandwidth to 3-7 transactions per second. In time, more and more miner began their activity and these conditions made transactions slow.
That is the deal for segwit. What is segwit for bitcoin? SegWit is a “soft plug” and allows the network to work in the previous mode. However, the structure of data storage in the block also changes the mechanism for checking transactions for full network nodes. Now the captions and scripts are divided into a separate structure, which is called a separate witness. This allows the main block to contain more transactions, and also eliminates the variability of the identifier of the same transaction. It is one of the solutions, which decides such problem. What is segwitlitecoin and what is segwit in bitcoin does not matter – the principle of work does not change. What is segwit2x? It was also a potential decision to scale cryptocurrency. However, the development was abandoned. So be careful if meet segwit2x fork on the internet as a proposition to join it. In most cases, it is deceive for the clients.
As you can see – it is a good way to scale Bitcoin and other cryptocurrencies. However, it is not enough. The number of miners are not going to fall and going only to increase. The problem are going to stay. That is why more decisions should be between the developers and authorities to find the way of safety scale and protection the owners of the coins. On the other hand, the risk of criminalizing of such kind of business is increasing. The great work should be done if we want to see cryptocurrency effective in the future.