Bitcoin’s Blocksize Debate: Behind the scenes of Bitcoin’s (BTC) success, a debate continues about whether to expand the leading cryptocurrency’s blocksize from 1MB to 2MB. On one side, the “Big Blockers” want to increase Bitcoin’s blocksize, allowing the cryptocurrency to realize its potential as a cash alternative and compete with traditional payment systems. On the other side, the “Decentralists” worry that increasing Bitcoin’s blocksize will create barriers to entry for miners, compromising Bitcoin’s security and welcoming government regulations that would jeopardize its censor-free qualities. A group of developers tried to settle the issue in November 2017 by increasing Bitcoin’s blocksize to 2MB with an update dubbed “SegWit2X,” but the proposal failed, proving too controversial. This post examines SegWit2X, the greater blocksize debate, and the important ramifications this debate has for Bitcoin’s future.
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