Bitcoin is Digital Gold, Not a better PayPal: SegWit2x failure

Several times, the New York Agreement is credited with bringing the SegWit improvement to Bitcoin network. Still, the hard-forking capacity increase that was combined with the agreement has failed to gain much grip.

Particularly, the support 2x increase has waned and many CEOs have pledged their support for changes. Thus, few were pointing to the hard-forking rise with SegWit2x.

The key factor now is clearly a base that Bitcoin protocol is more of a digital gold than Visa or PayPal. Moreover, still, the better payment systems can be built on top of that base Bitcoin layer.

Also Read: BTCC founder Bobby Lee confer China’s Bitcoin Exchange Ban and Segwit2x

PayPal vs Digital Gold

In simple words, there is a division in the community of Bitcoin. Thus, for those who view bitcoin as the new asset without any government, bank or third party.

Similarly, for those who prefer bitcoin as digital gold doesn’t see any change made to the network. Since it is to secure the idea that there is no counterparty link.  Therefore, people who prefer Bitcoin as a medium of payment in which one change accepts in the form of increasing hard fork capacity.

Moreover, a hard fork is a protocol change that requires every Bitcoin user to move over to a new network with different rules. Thus, it helps to increase the capacity that lessens the transaction fees on the network.

Also Read: BitGo announces Segwit2x hard fork based on market price

Over the Digital Gold a better PayPal

Significantly, a better version of PayPal can be built on top of Bitcoin. Therefore, a situation in which base layer is uses for the digital gold use case. Nonetheless, it never works as it is not possible to build secured system on top of a less secure base.

The most given example of a better PayPal that can be built on top of Bitcoin i.e Lightening Network. Thus, network cache Bitcoin transactions send between users rather than on-chain transactions.

In this regards, the blockchain is more preferable for the Lightening Network’s smart contracts. In the dispute time, a user may back off to the blockchain.

Meanwhile, Lightening Network usually gets all the attention by double layer payment resolutions for Bitcoin. However, the other options probably tradeoffs such as centralization, privacy, and other zones.

Read Next: ‘Reckless Endeavor’ Hong Kong bitcoin meetup criticizes Segwit2x

Image Source: SegWit2x failure


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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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