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Trezor CEO: Bitmain’s Actions Go Against Bitcoin Movement & Philosophy

Trezor CEO: Bitmain’s Actions Go Against Bitcoin Movement & Philosophy

Trezor CEO: Bitmain’s Actions Go Against Bitcoin Movement & Philosophy

​Marek Palatinus, better known to the cryptocurrency community as Slush, has said that Bitmain’s recent actions regarding the proposal of a user-activated hard fork (UAHF) strictly go against the philosophy of bitcoin users and community.

“All recent actions of Bitmain goes directly against philosophy why you and me are in Bitcoin movement,” said Slush.

On June 14, Bitmain, the world’s largest bitcoin mining equipment provider and the parent company of Antpool, published a blog post entitled “UAHF: A contingency plan against UASF (BIP 148) as a response to the Bitcoin Core development team’s majority rejection of Barry Silbert and Digital Currency Group-led New York Agreement participated by 57 other companies that represent approximately 83 percent of bitcoin’s hashrate.

The group of 58 companies including DCG proposed the activation of the Bitcoin Core development team’s transaction malleability fix Segregated Witness (Segwit) by September at an 80 percent activation threshold and execute a hard fork six months thereafter to increase the bitcoin block size to 2MB.

“Bitcoin industry came to an agreement in New York (New York Agreement) on tangible steps to scale Bitcoin in the near future. Representatives of Bitcoin Core declined the invite to attend this meeting. This agreement is the hard work of those who sincerely believe in Bitcoin and those entrepreneurs or investors who have strong financial interest in scaling Bitcoin quickly and unitedly. Bitmain is a supporter of the agreement. We support the agreement and we want to make it happen as soon as possible,” read Bitmain’s blog post.

As a response to the delay of New York Agreement, Bitmain presented UAHF, to convince the community in executing a hard fork to scale the network. The Bitmain development team further emphasized that the activation of BIP 148 would result in two separate chains of the Bitcoin network and that economic support towards BIP 148 is most likely based on speculation.

Technical description of Bitmain’s UAHF present a similar vision to that of Bitcoin Unlimited in the sense that it capps bitcoin block size to 8MB and miners can decide to create small or larger blocks. Although a soft limit is established at 2MB, miners can create blocks that are less than 8MB.

“It will accept block of which the size is less than 8MB and we, miners, will soft-limit the block size to less than 2MB. There will be a soft fork rule added into the protocol to limit the sigops per transaction within 20K. The block size will not be a part of hard-coded consensus rule for us in the future after the fork block. Miners who generate large blocks will be punished by economic incentives, but not limiting the block size,” Bitmain explained.

However, there exists a severe flaw in Bitmain’s UAHF paper. It reasons that BIP 148 should not be activated because it will most likely lead to a split chain when Bitmain’s UAHF leads to the identical outcome. If a hard fork is executed, two persistent chains will exist, which could inflict significant damage to bitcoin’s image and network effect.

Still, Bitmain hopes to see the activation of the New York agreement. If the industry and community agree on the New York agreement, it aims to activate Segwit as soon as possible. But, if BIP 148 activates, Bitmain claimed that the UAHF chain will be live on the same day.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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