A three minute primer on SegWit2x

segwit2x

If you’ve been reading cryptocurrency news over the last month then you’ve probably come across the term SegWit2x, which, to most people means absolutely nothing. At the same time, if you’ve tried researching what the heck SegWit2x is you’ve probably stumbled across some pretty lengthy articles that likely require a PhD to get through. So to make life easier, we thought we’d put together a quick three minute primer on what SegWit2x is, and why you should (or shouldn’t) care.

Let’s start with Segwit

First you need to know what SegWit is. SegWit is a process that increases the block size limit on a blockchain by removing signature data from Bitcoin transactions. The net result here is that the volume of transactions that fit into a block can be increased without raising the block size parameter.

So what’s the deal with adding “2x” to the end of Segwit?

Segwit2x is the concept of activating Segwit and increasing the network’s block size to 2MB (today it’s 1MB so think – double).

What’s the general goal of Segwit2x?

The goal here is to increase Bitcoin’s transaction capacity.

Why is it so controversial?

Segwit2x is so controversial because many believe that it could cause a split, meaning that we’d actually have two different Bitcoin’s starting August 1st. This is part of what has been causing so much volatility in the cryptocurrency world over the last couple of weeks.

There, three minutes later and you now understand the basics of what Segwit2x is and why it matters. If you’re looking for a deeper dive (but not too deep) I highly recommend taking a look at this article on CoinDesk.

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