Bitcoin Breaks $2,600 As SegWit Nearly Finalized
Within a 24-hour period, Bitcoin price increased from $2,300 to $2,600, recording a staggering 13 percent surge in value.
Earlier this week, miners began to signal for Bitcoin Improvement Proposal BIP 91, a kludge between the original Segregated Witness (SegWit) proposal and the Digital Currency Group-led SegWit2x, also known as the Silbert accord.
Despite its short timeline that may cause difficulties for developers resulting from technical instability, BIP 91 was the last chance for miners and the Bitcoin community to avoid a network split, which would have led to the creation of two Bitcoin Blockchains or Bitcoins.
In contrast to user-activated soft fork, BIP 91 is a miner-activated soft fork, which will activate SegWit, a transaction malleability fix and scaling solution developed by the Bitcoin Core development team at an 80 percent activation threshold, as listed on the SegWit2x proposal.
The 80 percent activation threshold was surpassed on July 18 with major mining pools including Antpool, BTCC and Bitfury signaling for the activation of BIP 91. At the time of reporting, hash rate signaling BIP 91 is at 83.3 percent and analysts including Squeeze have noted that BIP 91 could be fully locked in within the next few days.