Tuesday, November 30, 2021

Bitcoin Network ‘Locks In’ BIP91, Price Leaps With Joy

Bitcoin Network ‘Locks In’ BIP91, Price Leaps With Joy

Bitcoin miners have successfully mined and signaled for BIP91 in the last 269 blocks of 336 — or, the 80 percent required for BIP91 “lock-in”. SegWit now looks all but certain. At press time, 93 percent of miners are signaling for BIP91.

BIP91 Technique Looks Like a Success

This is the first of many steps to improve scaling the Bitcoin network. In the past, the network has become congested during times of high volume. This resulted in high transaction verification times and fees. BIP91 is a means to activate SegWit, and help alleviate this network congestion.

bitcoin block size SegWit BIP91To signal for BIP91, miners had to change “bit 4” in the version field of the bitcoin code from a 0 to 1. Later, signaling for Segwit activation itself can be achieved by signaling “1” in bit 1 of the version code. This means miners and nodes could potentially signal for both BIP91 and SegWit simultaneously.

After block 476,783 there will be a 333 block grace period for miners to make adjustments for the upcoming BIP91 activation.  At the current mining rate, this could take between two and three days.

At Block 477,120 BIP91 will activate. Any block that is found after activation does not signal for SegWit in bit 1 will be rejected. This will (hopefully) include over 95 percent of nodes, which is required to actually activate SegWit — which is defined in another existing improvement proposal called BIP 141.

Bitcoin Price Shows Confidence in the Future

In the days leading up to the early activation of BIP91, bitcoin price dropped on Coinbase to as low as $1,862 USD on 16th July. However, as the percentage of miners signaling for BIP91 increased, the price increased as well. Today the price on Coinbase reached $2,784 a few hours before BIP91 locked in.

With the upcoming changes to Bitcoin over the next few months, users should take steps to protect their property. Some exchanges, service providers, and sellers are suspending BTC transactions for various periods of times. Users should be taking similar precautions to protect your bitcoins during this time.

Some easy ways to protect your bitcoin over the next few months:

  • Do not keep bitcoins stored on exchanges or “custodial” wallets
  • If you must use a custodial service, read and understand its policies re: forks and split chains
  • Move coins to wallets where you control the private keys
  • Utilize cold storage or paper wallets
  • Do not transact bitcoin around 1st August.

Does BIP91 “lock-in” make you feel relieved about Bitcoin’s future? Let us know in the comments.

Images via Pixabay

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