Cointelegraph recently reported that Bitwala will not “fork away from” the Bitcoin chain supported by the core development team. While this is newsworthy on its own, it actually forms part of a larger and more troubling story.Bitwala’s statement
Yesterday Bitwala published a blog post indicating that they will not support the New York Agreement, of which they are signatories. The statement reads in part:
“We will not actively fork away from...the chain that is supported by the current Core dev team.”
While it’s theoretically possible that Bitcoin’s core team could change its mind, to date they have been vehement in their opposition to the SegWit2x blocksize increase. Therefore, Bitwala is effectively withdrawing from the New York Agreement.What is SegWit2x?
SegWit2x is a bit more descriptive than “New York Agreement,” but both terms refer to the same thing. In May 2017, a meeting of major Bitcoin miners, exchanges, and wallet services met at the Consensus conference. This meeting happened at the urging of Barry Silbert, CEO of Digital Currency Group.
At the meeting, the overwhelming majority of industry participants agreed on a compromise to resolve Bitcoin’s three-year scaling debate. The agreement called for Segregated Witness to be implemented in August of this year. In November, the network was to follow up with a hard fork to increase the blocksize to 2 MB.
According to Digital Currency Group, the agreement was supported by:“58 companies located in 22 countries 83.28% of hashing power 5.1 billion USD monthly on chain transaction volume 20.5 million bitcoin wallets.”
The agreement was signed by 56 companies, including Bitwala.Bitwala reneges
There had been some speculation that if push came to shove and a split appeared likely in November, some of the signatories might go back on their word. Bitwala has become the first to publicly announce that it is no longer supporting the agre...