Bitcoin's BIP 91 upgrade and SegWit2X runs into system

Bitcoin's SegWit2X ran to accommodate the BIP 91 upgrade has made a price shock. The value of the virtual currency briefly touched US$3,525 on Tuesday as the highest value Bitcoin ever achieved before it finally fell to the range of US$3,481 on the same day. The record marked an increase of 264 percent year-to-date after months of community dispute in the world of cryptocurrency.

Tinuku Bitcoin's BIP 91 upgrade and SegWit2X runs into system

The Bitcoin community has been churning out on a "scale debate" because of the large number of unconfirmed backlogs or transactions in the blockchain. This ledger is Bitcoin's underlying technology that contains all financial transactions.

Debate arises about increasing the capacity of blockchain data to accelerate the ability of Bitcoin networks. The huge debate within the community resulted in two separate proposals on how to expand the blockchain's capabilities.

The two proposals led to the emergence of a "fork" that broke the blockchain by the end of July 2017 and a new digital currency called Bitcoin Cash was created. The market capitalization of Bitcoin Cash is under one tenth of Bitcoin which has been popular.

The majority of Bitcoin communities support a software upgrade called Bitcoin Improvement Proposal (BIP 91) which introduces something new called SegWit2X to blockchain. SegWit is a "segregated witness" that will move some data outside of the main Bitcoin network to increase capacity.

Despite the negative response by a number of miners, they finally approved the BIP 91 proposal that could increase the block size and SegWit has been implemented on Tuesday. After SegWit is locked on Tuesday there will be a grace period of two weeks for miners to upgrade their software.

"SegWit is activated this afternoon, Tuesday, and there is great hope the network will open up with lower transaction costs being normal," said CryptoCompare CEO Charles Hayter.