SatoshiLabs, maker of the popular TREZOR hardware wallet devices, says it will support all coins and legacy addresses resulting from next week’s hard fork. Since the new coins may not have replay protection, users wishing to access both will need to split their balances securely.
Will Support ‘BTC’ and ‘B2X’ Tokens
A statement posted on the company blog said:
“SegWit2X is a proposed fork of Bitcoin, to upgrade the blocksize to 2MB according to the New York Agreement. The fork is scheduled to occur at block height 494784 (around November 16). As this is a contentious hard fork, Bitcoin will most likely split in two after this block, with Bitcoin (BTC) and SegWit2X (B2X) emerging.”
SatoshiLabs’ wording is interesting, and reflects why many are confused about the upcoming fork and its implications.
Technically, if the SegWit2x (S2X) fork succeeds (by gaining the majority of miners’ hashing power), then it “becomes” Bitcoin (BTC). So the company is implying that BTC is still Bitcoin, even if it’s the minority chain.
Post-fork, if S2X “succeeds” and is implemented, there’s a possible scenario where several users still regard the minority chain as “true” Bitcoin. This wouldn’t result in lost wallet funds, but it would likely cause confusion and potentially damage bitcoin’s value.
News reports have indicated that support for S2X is dropping, with some high-profile companies withdrawing from the “New York Agreement” that birthed it. SatoshiLabs, which never signed the controversial agreement, has been vocal in its opposition to the S2X fork. CEO Pavol Rusnak has regularly spoken against the plan and regularly tweets “#NO2X“.
— Pavol Rusnak (@pavolrusnak) October 25, 2017
Data site Coin.dance indicates that miners signaling support for S2X has dropped slightly in the past month. However 830 over the past 1,000 blocks have still signaled in favor.
TREZOR and SatoshiLabs Monitoring Various Forks
SatoshiLabs added that users will be able to access whichever tokens they prefer.
“If you only care about BTC and don’t need B2X, no action is required. Use your bitcoin as you would normally. If you only care about B2X and don’t need BTC, no action is required. Use your B2X as you would use other coins. See the end of the splitting guide.”
Developers will post a guide to splitting the balances when a technique is ready.
We should clarify that, whatever SatoshiLab’s ideological stance, any coins you keep on a TREZOR device are safe. The company also opposed the August fork that created Bitcoin Cash, but provided a tool for users to split BTC/BCC balances, and keep Bitcoin Cash tokens on their devices even now.
SatoshiLabs also agreed to support tokens from the “Bitcoin Gold” (BTG) fork after developers implemented replay protection. Its statement on that issue is here. However BTG is regarded as an outsider plan with little standing in the Bitcoin community.
What You Should Do With Your BTC
There is a risk of “replay attacks” or accidental broadcasts to two different blockchains in the wake of a hard fork to S2X. BTC and the hypothetical “B2X” token use the same address format and are vulnerable to this — again, it’s only a problem if you wish to keep both tokens.
In the event of any hard fork, Bitsonline advises users to keep their coins in a wallet where they control the private keys. It’s also a good idea to avoid making transactions around the time a hard fork occurs. TREZOR has earned a reputation for security and reliability, along with its hardware wallet competitors Ledger and KeepKey.
What are you doing with your bitcoins (if anything) in preparation for the hard fork? Let us know in the comments.
Images via SatoshiLabs, Jon Southurst