Please note: this statement contains status updates on Segwit2x located at the end of the post.
What is Segwit2x?
Following this summer’s activation of the code upgrade to SegWit (resulting in creation of 2 chains Bitcoin and Bitcoin Cash), the bitcoin network is preparing for another change: Segwit2x, a ‘hard fork’ with the intention of further expanding Bitcoin’s transaction capacity by increasing its block size from 1MB to 2MB. Read more about what blockchain forks are, why they happen, and how to deal with them in non-technical language.
Segwit2x is a continuation of the ‘Bitcoin Scaling’ debate, which we have addressed in the past (see our statement on Bitcoin Scaling). The 2x ‘fork’ is planned to take place during Bitcoin block number 494784, and at the current speed of blocks being processed, the latest estimate is that it will happen on November 15th (follow the real time countdown).The debate is not over yet, nor are the outcomes of the Bitcoin scaling clearly outlined and definite.
Coinify Anticipations regarding Segwit2x Fork
Coinify is a virtual currency transaction company with Bitcoin users at its core, and our key focus and priority is to act in the best interest of our users. As the Segwit2x fork will affect the way Bitcoin transactions are confirmed and registered on the Bitcoin blockchain network, we will take the necessary measures to protect our customers.
As a part of our contingency plan, we anticipate the need for a downtime of our services for a short period(s) around November 15th. We want to stress that we will make sure the downtime is as short as possible while still keeping our customer funds safe until the Bitcoin network is stable again.
Regarding the (insofar unclear) outcome of Segwit2x:
We shall continue supporting the most popular chain (the chain that will have the most hash power) and we will continue calling this chain Bitcoin (BTC). Shall the event result in 2 chains, we will call the minority chain (the one with less hash power) a new name, depending on the size of the block it uses (BC1 or BC2).
Coinify does not hold customer funds in Bitcoin, with the exception of Merchants with an active balance who have chosen to be paid out in Bitcoin. We will contact all these Merchants and suggest them to request Bitcoin payouts no later than 12:00 PM on Monday, November 6th (CEST).
More specific implications of the outcome of the Segwit2x fork will be communicated to our customers shortly. Please be on the lookout for updates in the following section.
Dear customers, as we informed earlier, the Segwit2x was officially suspended but a chance of minority Segwit2x Hard Fork was still present.
We have been following the developments around the block 494,784 (when the fork was originally planned to occur) very closely. There has indeed been an attempt to execute Segwit2x fork, yet it turned to be unsuccessful. This means that the no chain other than the Bitcoin blockchain has been created and everything continues as usual.
Our Trade platform on coinify.com has been operating normally. However, if you were trading inside blockchain.info wallet, you have experienced the services temporarily unavailable. Blockchain.info has already re-enabled their services.
No action is needed from your end. Shall you have any questions, you are welcomed to reach out to our Customers Support team at https://support.coinify.com/Tickets/Submit.
Even though there have been statements that report SEGWIT2X being suspended, this is not 100% sure yet and there still might be a minority SegWit2x fork. Having your best interest in mind, we adhere to our protocol of calling a service downtime only if necessary.
At the present rate of blocks being processed, the current estimate for the Segwit2x fork is Thursday, November 16 (check the latest date here).
As anticipated before, there will be a need for a downtime of our services (buy, sell and pay with bitcoins). This will be implemented roughly 24 hours before the fork.
All transactions to be processed post fork will be done on the chain with the largest hash power as default. This applies to buy bank orders which payments reached Coinify bank account during and after the downtime.
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