Bitcoin segwit2x explainedhow to double your bitcoin

BIP 91 Locked In

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The upcoming SegWit2x hardfork lacks replay protection. In this piece we look at what you can do to protect yourself, by bitcoin segwit2x explainedhow to double your bitcoin various ways you could split your coins.

This is an increase in the maximum block weight to 8MB from 4MB. Bitcoin segwit2x explainedhow to double your bitcoin many ways this is similar to the recent Bitcoin Cash hardfork also an increase in the blocksize limit to 8MB.

A key difference is that unlike Bitcoin Cash, B2X does not include strong transaction replay protection. Therefore many users could lose funds, on the other hand, those that do successfully protect their funds could make positive investment returns. The hardfork is expected to occur on around Saturday 18th November This is likely to lead to significant price volatility, which may present investment opportunities.

Due to the lack of replay protection, whatever your view on the situation or your investment strategy, it is sensible to split your coins as soon as possible, to ensure as much flexibility as possible and also to protect your coins. Many users are likely to intend to send only one of the two coins in a transaction, but accidentally send both, which may result in an irrecoverable loss of funds.

If you do not split, you could be one of these users incurring losses. For example scammers could repeatedly deposit and withdraw from exchanges, hoping to find any weaknesses. If any exchange has not implemented replay protection, attackers are likely to exploit this quickly, which could make the exchange insolvent.

In addition to this, individual users could be targeted by scammers. Bitcoin segwit2x explainedhow to double your bitcoin could sell the victim Bitcoin, knowing their wallet is following the wrong chain or scammers could acquire Bitcoin from a victim who is expected to replay coins on both chains to the buyer.

These kind of losses and attacks could damage bitcoin segwit2x explainedhow to double your bitcoin reputation of the ecosystem, therefore a contentious hardfork without strong replay protection is a high risk event with potentially significant negative consequences.

However, there are actions you can take to protect yourself. Since the B2X hardfork does not contain transaction replay protection enabled by default, when spending your coins, in either chain, the transaction could be replayed on the other chain.

Therefore the prudent thing to do is split your coins, so that your BTC and B2X bitcoin segwit2x explainedhow to double your bitcoin on different outputs on each chain, which means that your transactions can no longer be replayed.

Unfortunately this is not a simple process and many people are unlikely to be able to achieve this. You cannot split your coins prior to the hardfork, however a prudent strategy may be to prepare how you plan to split beforehand, for example moving your coins to a different wallet before the fork occurs.

For many users this is not likely to be easy, however if you act fast, there could be investment rewards, if you are able to sell the spin-off coin before others have a chance to do so. In order to split your coins, you would bitcoin segwit2x explainedhow to double your bitcoin need to manually construct your own transactions or use two wallets, one for BTC and one for B2X, since most wallets will not allow you to broadcast two conflicting transactions.

You will then need two separate wallets, to receive the coins on each side of the split. A full node wallet means it verifies all the consensus rules on the entire blockchain. Two fully verifying nodes may be needed because:. You need to ensure each respective wallet enforces each of these rules, to make sure your wallets do not follow a different chain to the one on which your coins are located on.

Otherwise your coins could disappear from your wallet. In order to prudently bitcoin segwit2x explainedhow to double your bitcoin for the hardfork, it might be a good idea to run full nodes of each client on a separate computer. The syncing process can take several days, therefore perhaps you could start to run the nodes before the fork, bitcoin segwit2x explainedhow to double your bitcoin you may want to be ready to split your coins and spend them as soon as possible. The most basic way of splitting is to run a BTC client and a B2X client, import your private keys, and then try to send bitcoin segwit2x explainedhow to double your bitcoin coins to yourself, to two different outputs on each chain.

Either both transactions confirm, in which case you succeeded, or the same transaction occurs on both chains, and you simply try again. The trouble with this method is that it could be expensive, in terms of both time and money. Many people may try this approach and therefore network congestion could be high, and the more failed attempts occur the more one needs to pay in fees.

In addition to this, at least one of the two chains is guaranteed have minority hashpower, which could increase the block interval in the short term, resulting in more transaction congestion and you would need to wait for your transaction to confirm on both sides of the split to ensure bitcoin segwit2x explainedhow to double your bitcoin are protected.

Therefore, by default your B2X wallet will broadcast its transactions to the BTC network, making transaction replay likely. Locktime is a transaction field, which ensures a transaction is only valid after a certain block height. By default some wallets, including Bitcoin Core, add the current block height to the locktime field for their transactions.

There are several motivations for this transaction type, one of which is to reduce the incentive for miners to orphan the current leading block, in order to get more fee income, by scooping up the fees from transactions already confirmed in the last block and the transactions in the memory pool. This is expected to be a potential problem in the future when the block reward is low. For example, if the BTC chain has a 5 block lead over the B2X chain, you could send a BTC transaction with the current block height as the locktime, therefore this transaction will be invalid on B2X for the next 5 blocks.

If the transaction confirms on BTC, you could then send another different transaction spending the same output on the B2X network, before the 5 block period is over. This could also work the other way around if B2X has the block height lead.

This method sounds complicated, and involves monitoring both chains. However, using the Bitcoin Core wallet this may happen by default and can be combined with the trial and error method described above. In theory, all you need to do is see which chain is in the lead, with respect to block height, and then send your transaction on that chain first.

The B2X chain is considering adding opt in replay protection. This essentially means B2X client defines a subset of existing valid transactions and then prohibits these transactions on the B2X chain. Therefore you could send a transaction in this format on the BTC network and it would be invalid on B2X, resulting in a successful split. However, this could be technically challenging to do, as it is not clear if any BTC wallets will support this feature and there may not be enough time for wallets to implement this for ordinary users.

In addition to this, it is not known what type of opt in replay protection B2X will use or if this feature will be enabled at all. The official B2X client appears to have gone through the following iterations:.

Taint the coins with already split coins. Somebody else may have successfully been able to split their coins. They could bitcoin segwit2x explainedhow to double your bitcoin send you an output from their split coins.

You could then use this output as an input for your new transaction. Since this input only exists on one chain, your transaction would be invalid on the other chain. Ideally this could be the coinbase reward from a block mined after the split, that way you can be sure your transaction can only occur on one side of the split, regardless of any potential re-orgs. This process seems easier than the above methods, although you must ensure you get your coin control in your wallet arranged correctly to ensure you spend the desired transaction input.

This method requires waiting for somebody else, therefore it could be slow, which may be a problem if you want bitcoin segwit2x explainedhow to double your bitcoin split as soon as possible. You could send your coins to an exchange which supports both BTC and B2X, the exchange could then handle the split for you. You need to check if bitcoin segwit2x explainedhow to double your bitcoin policy of the exchange is to split your coins before the split or to also split coins sent to them after the split.

A disadvantage of this policy is that your need bitcoin segwit2x explainedhow to double your bitcoin take counterparty risk, which you may not want to do with your long term savings. Taking such a risk could be particularly problematic during a high risk, high volume period such as a chain split without strong replay protection, which may present operational challenges for the exchanges.

This method also goes against a common narrative or mantra in the Bitcoin community, which is you should always control your private keys, especially during a hardfork. Although an advantage of sending your coins to the exchange before the fork, is that you may be able to trade the two coins very quickly, perhaps even faster than those doing the above split methods.

Bitcoin segwit2x explainedhow to double your bitcoin could provide you better investment opportunities. Perhaps the best strategy is to combine the above methods.

After reviewing the policy of the exchanges, you could send some of your coins to an exchange of your choice before the fork and then attempt to split the remainder of your coins using method 2 explained above. Therefore if you do any above, you are probably well ahead of the majority, which could hopefully lead to some financial rewards or at least help you avoid losses.

Skip to content Abstract: Which wallets to use In order to split your coins, you would either need to manually construct your own transactions or use two wallets, one for BTC and one for B2X, since most wallets will not allow you to broadcast two conflicting transactions.

Two fully verifying nodes may be needed because: On the BTC side you may need a wallet that enforces the 4 million unit weight limit which B2X plans to breachand; On the B2X side you need a wallet that enforces the coin wipeout protection rule, which requires non witness data in the first B2X block to be greater than 1MB.

The splitting methods Method 1: The trial and error approach The most basic way of splitting is to run bitcoin segwit2x explainedhow to double your bitcoin BTC client and a B2X client, import your private keys, and then try to send your coins to yourself, to two different outputs on each chain.

Locktime Locktime is a transaction field, which ensures a transaction is only valid after a certain block height.

The official B2X client appears to have gone through the following iterations: Taint the coins with already split coins Somebody else may have successfully been able to split their coins. Let an exchange do it You could send your coins to an exchange which supports both BTC and B2X, the exchange could then handle the split for you.

Conclusion Perhaps the best strategy is to combine the above methods.

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Screenshot from Coindance showing BIP 91 has now locked in. The Bitcoin price has already surged based on the expected result. Anticipation of this happening seems to have already pushed the Bitcoin price up to new highs for this month. Well as I understand it after a further 2 days of blocks BIP 91 will activate - this is a grace period to give people time to change their software to signal for Segwit.

SegWit will activate roughly 2 activation periods 4 weeks after this. Thanks to cardboard for his infographic which clarifies this in an easy to read manner. Given the extremely positive reaction that there has been to the rising signalling of BIP 91 I think we will see a lot of people who were holding off on buying Bitcoin entering the market again.

As I have explained before the more money that flows into bitcoin, the larger the total supply available to altcoins becomes as well.

Not quite as previously discussed the next hurdle will come in roughly two months time after SegWit activation - so late October at the earliest when there is a planned doubling in Bitcoin block size as per the SegWit 2x plan. This will require an actual hard fork. Despite this we may see renewed fear and uncertainty at that point as the words "hard fork" tend to scare a lot of people in the bitcoin community.

Given how relatively smoothly this has gone it seems likely that may also end up causing less turmoil than expected in practice. Anyway it's quite late here and I will be going to bed shortly so may not be able to respond to all comments until tomorrow. Click here to read more! This was very helpful. I think there will be wonderful opportunities for trading in the next few months. Indeed, most actual bitcoin users want the UAHF to bigger blocks.

Check out this poll that can't be sybil attacked voting requires signing a bitcoin address: In this post I examine why the UAHF is probably going to cause a short squeeze on Bitcoin this weekend leading into next week. You can make money on this, but it will be risky. I have just upvoted your all post. Please follow me https: You just did it again.

I have therefore flagged your last post which also featured the same bot like comment in your own responses! Here's an outlook how it performed compared to the rest. I think it is good that it came to BIP It may be the best solution for the future. As most of the coins are so dependent on BTC, it will also be the right way for us all I hope.

Every Cryptocoin is only as valueable as the community behind it ;. That shouldn't be necessary now. Obviously the market loves Segwit coming to Bitcoin. The innovation floodgates will be open.

Don't be fooled by bankster propaganda, actual bitcoin users overwhelmingly prefer bigger blocks - NOT segwit: Bear in mind to vote in that poll you have to actually sign a bitcoin address you own. It can't be rigged by a sybil attack.

Regular Bitcoiners want big blocks? Maybe Bitcoin users who know next to nothing about what makesit truly valuable and disruptive would go that route. Big blocks are the darlings of those who want cheap short term fees at any cost Yeah, you're right, who would want lower fees and faster transaction times? Not at the cost of centralization I don't. You want fast transactions, use Visa. How will it centralize anything? It is the big block camp that aligns closely with the govt-corp agenda.

They want to track and tax it all with all transactions on a large trackable blockchain that requires very large computing platforms to manage. Do you think some individual freedom loving cypherpunks are going to have the resources or interest in running and developing for that future version of Bitcoin? The bigblock agenda hands that totally dystopian future to them [the statists on a friggin' silver platter!

Seriously, you are 1 ignorant and willfully so, or 2 a shill--and a probably paid one. I am leaning towards no. I would add 3 stupid, but nobody in the BItcoin space is that stupid. Private property itself was stolen during the enclosure acts, through force.

Once it was all collective property, now the workers must fight each other to work under the capitalist just to survive. Without guards nothing would keep capitalism in existence. Capitalism has never existed without a government, while we have hundreds of examples of communism and socialism. You lack fundamental understanding of anarchy and you disgust me.

Trade your money for Tether if you think bitcoin is going to crash and you want to buy some or sell your bitcoin for tether if you can't sell it on coinbase! Later you can sell you tether for bitcoin and cash that out. Tether is crypto coin that is fixed to the dollar price, so 1 tether is always one dollar. Instead of cashing out you bitcoins to dollar you could simply buy tether and stay in the crypto world without taking care of fees and taxes. Here's the latest interesting bit of reading about 'finex.

You can keep them in your wallet and they kinda work the same way. This is really good news, thanks for sharing it with us! I'm following you for a while now, and you explained this earlier this week, now it is "locked in", nice! But what about all the others, who are not supporting it? How does this work? So we can be sure August 1 will be a good day, filled with mainstream media attention and even more money coming in the cryotospace??

Starting in a couple days, miners will start orphaning blocks that aren't signaling for the original version of segwit bip Miners that intend to fork will still signal to avoid being orphaned, but will switch to bitcoin-abc client on Aug 1 to start mining bigger blocks. Either way, make sure you have your coins in a wallet where you'll be able to access BOTH coins in the event of a split. If that were true we would have had scaling already. We will see though. BitcoinCash fork already trading at numbers that put it over a billion market cap - and it hasn't even forked yet!

According to Coinbase, they will not be allowing customers access to any Bitcoin Cash. Note that locking in BIP 91 is not the same thing as locking in Segwit. Locking in BIP 91 amounts to miners saying, " blocks from now, we all promise to ignore non-Segwit-signalling blocks, and build a chain of Segwit-supporting blocks. Assuming that all the miners now supporting BIP 91 stick to the terms of that agreement, after a short, block grace period, they will begin mining, and mining on top of, Segwit-signalling blocks only.

This means that if there are still miners creating non-Segwit blocks, they will have limited hashpower, and consequently be building a much smaller chain than the Segwit-mining majority. Because the network accepts the longest blockchain as the valid one, these non-Segwit miners will be building an invalid chain, giving them a significant financial incentive to switch to the Segwit chain. Then, after another grace period, Segwit itself should activate, and will be usable on the network. This all assumes that these miners do what they've comitted to do.

If they break their word at some point, the situation sort of explodes in complexity, and a lot of what I've written above becomes invalid. To speak more directly to your question, the miners who do NOT support Segwit, as noted above, will be mining a minority chain, and subject to having their blocks rejected by the majority of the hashpower.

If miners and users prefer a chain without Segwit and presumably bigger blocks they will likely hard fork themselves away from the majority consensus rules, creating an altcoin. This prevents a lot of potential harmful interference between the two chains. Note that the "success" or "failure" of a lot of these initiatives, whether they be activation mechanisms, technologies, concensus rules, or altcoins, are subject to the support of both miners and users.

I mention this because we don't have a clear idea of where miner and user support really lands on a lot of these proposals. We know what they're saying, yes, but we don't know if they are being genuine in signalling their support, or if they'll change their minds. It's completely possible, for example, for users to support Segwit2x long enough to activate Segwit, and then not follow a 2 MB hard fork.

It's also possible for a fork of the Bitcoin software to start out with overwhelming miner support, and for that support to migrate away from that chain if there is insufficient use of that coin to maintain the value of that coin and thus, profitable mining. Thus far, both polls reflect the biases of the faction that created them among other biasing issues , making them minimally effective as real gauges of opinion. I'm not aware of any good indicators, but there are ideologues on either side who exhibit I'll say this diplomatically misleading optimism and confidence about how things "will" work out.

I advise you to interpret such claims with caution, even when they are represented as fact, and to do your own research, using a variety of sources and opinions.

This makes a lot of my questinsore so clearly answered! As I understand it those people won't get excluded anyway. It is not a hard fork. If someone is completely against it they can fork off their own chain but it won't be bitcoin. Big Blockers are forking off on Aug 1. If they take a significant amount of hashpower with them, they WILL be bitcoin since they will be the longest chain. I very much doubt that since the majority of hashpower is behind the Segwit 2 x whether you like it or not.

People are free to fork off if they want but it is basically irrelevant - if they had the kind of support that they need then we would have had scaling a long time ago.

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