The argument set forth by Bitcoin Unlimited is that blocks are beginning to fill up, making it slower for people’s transactions to process. In turn, the argument is that fees are rising as well, which is stifling bitcoin adoption and prohibiting user growth.
This lack of progress (real or perceived) has so far most affected bitcoin’s business community, many of which are dependent on technical improvements in the network for additional growth. Indeed, while bitcoin’s primary development group has its share of detractors, the majority of startups and service providers continue to support Bitcoin Core and its work.
As for how he’s able to achieve the feat, Yang said he used to work for Chinese Internet giant Tencent and that he did work for Zeusminer maintaining a large litecoin mining farm. Other members of the company are current Tencent employees, he added.
When asked about Wu’s involvement, Yang offered no comment, though he did hint that some relationship between the two firms might be disclosed.
But, time will tell whether ViaBTC will follow the pack should SegWit see broad adoption. For example, as the interview went on, Yang’s stance on the issue softened.
Despite all of its innovation, however, it remains largely unprecedented for a new mining pool to launch with approximately 100PH of hashing power, and other miners have called attention to the strange traction the pool has seen.
The story doesn’t quite stop there, however.
“As far as I can tell, Bitcoin Unlimited is gaining more and more support, or at least interest, including from several large pools. I believe Bitcoin Unlimited will probably succeed.”
In recent weeks, China’s ViaBTC became one of the first providers of mining software to switch its client from the official version provided by Bitcoin Core to an option provided by Bitcoin Unlimited, a rival development group that supports alternative methods of scaling that is focused on creating a more variable bitcoin block size.
But unlike Bitcoin Core, Bitcoin Unlimited does not have support for that developer group’s signature scaling solution, Segregated Witness, a planned technical fix that would effectively make bitcoin’s block size about 1.8 times larger than it is today by changing how information is counted toward this total.
As for what to make of the developments, it remains clear that the road to a bitcoin scaling solution isn’t yet cut and dry.
In interview with CoinDesk, Haipo Yang, the founder and CEO of ViaBTC, said that there was nothing that would change his mind about continuing to support multiple developer groups.
Complicating matters is that despite a consensus of developers suggesting Segregated Witness is the best way to scale bitcoin, ViaBTC remains unconvinced.
“If we do remain at a standstill, I think both sides should sit down and open friendly discussions to find compromise or make concessions, so that bitcoin can keep moving forward.”
First discussed in September 2015, Bitcoin Unlimited is a proposal whereby every individual node operator and miner would be able to choose a block size that they prefer rather than having to stick to the 1MB limit enforced by bitcoin’s consensus rules. As a result, the argument goes, a kind of block size market will emerge that meets the demands of the network at that time.
Eric Lombrozo, a Bitcoin Core developer and CEO of Ciphrex, expressed disappointment in how the scaling debate has become so politicized.
Further, because the rules for Segregated Witness require 95% of bitcoin’s hashing power to approve the transition, ViaBTC could effectively block its wider release. According to blockchain.info, over the past 24 hours, ViaBTC has accounted for 7.3% of the blocks discovered, though this has been as high as 9.6% in recent days.
Changing the bitcoin block size, though, does requires a hard fork, which Bitcoin Core has been resistant to do. Complicating matters is that in a hard fork, two blockchains with different rule sets are created, with bitcoin miners and node operators choosing their preferred option.
“It is the fastest pool for finding and broadcasting blocks. Since [the] beginning we have had zero orphan blocks.”
Yang also argued that, due to the pool’s unique payment method, the bitcoin transaction fees are distributed in a more equitable nature, thus allowing miners to generate more profit.
Bitmain is the creator of the well-known Antminer mining hardware as well as the operator of both Antpool and BTC.com mining pool.
If a node does not upgrade to the new software, they are cut off from the network until they upgrade, and if allowed to continue, this new blockchain could even develop into its own self-sustaining network.
“It’s well known in China that ViaBTC’s backer is Bitmain. Mining pools with substantial hashrate don’t just appear out of thin air,” he said.
In a tweet, BTCC’s Samson Mow asserted that ViaBTC is backed by Chinese mining giant Bitcoin.
He explained that the launch of SegWit is in the economic best interest of miners because it will enable greater transaction throughput, allowing bitcoin to remain competitive in a market that increasingly offers a diverse array of blockchain solutions.
But if one, relatively new bitcoin mining pool has its way, a much anticipated scaling solution could be dead on arrival.
As mentioned earlier, ViaBTC is a relatively unknown mining pool, and at nearly 10% of the network, it commands a lot of power for a mining pool that only launched last June.
Following months of debate over how to scale bitcoin’s transaction capacity, the conversation has become newly contentious as progress on much-hyped solutions continue to face the kinds of delays that perhaps should be expected when working with novel technologies.
In a blog post issued last week, ViaBTC criticized the proposal, suggesting that it would “fundamentally alter” the structure of bitcoin transactions.
When asked whether ViaBTC would be willing to compromise if Bitcoin Unlimited did not gain further hashrate, he offered an opportunity for conversation.
Segregated Witness, by contrast, requires only a soft fork, meaning nodes are still a part of bitcoin even if they don’t upgrade. They just won’t be able to broadcast SegWit transactions.
“I believe bitcoin needs more development teams and I’ve decided to support Bitcoin Unlimited.”
Bitcoin Core has also taken the approach that bitcoin is simply a settlement layer, and that most of the small transactions should take place on top-layer platforms, such as the in-development Lightning Network.
Bitcoin’s “most professional mining pool” has become its most controversial.
The Bitcoin Unlimited community, including ViaBTC, disagree with this.
However, Yang’s explanation is that the quality of his team’s software is simply a cut above what is offered by the market.
And with more than 7% of the total network hashrate, the mining pool can have a significant say in the direction bitcoin goes. Yang also believes that more hashrate will ultimately side with Bitcoin Unlimited.
Jihan Wu, co-founder of Bitmain, has argued in the past that small blocks are dangerous to bitcoin, and he appeared at a protest event earlier this month that saw talks on alternative scaling solutions, including Bitcoin Unlimited.
“Bitcoin is first and foremost a digital currency; its settlement capabilities are secondary to its monetary properties. When bitcoin loses its monetary attributes it thereby loses all utility as a settlement network,” ViaBTC wrote in its blog post.
Setbacks And Naysayers Begone! Bitcoin Breaks $8,000 On Investor Confidence
Bitcoin broke through the $8,000 price mark this morning, reaching an all-time high of $8,100, thumbing its nose at the growing chorus of doomsayers reacting to the financial industry’s rising interes
Bitcoin Price Achieves New All-Time High at $8,100, Market Confident in Institutional Investors
The bitcoin price has officially achieved a new all-time high price at $8,100, surpassing its previous high at $8,050 established earlier this week. $10 Billion Awaiting to be Invested in Bitcoin
Newsflash: Bitcoin Price Reaches $8,100, a New Record High
Bitcoin price has struck a new all-time high of $8,100 during Sunday’s trading, continuing its rally from the previous Sunday’s lows.
The world’s first cryptocurrency has hit a new record high of $
Prominent VC Investor: Be Aware of ICO Pump and Dump Schemes
Jason Calacanis, a highly regarded venture capital investor who has invested in 150 successful technology startups such as Uber, Evernote, and Swell cautioned investors in the cryptocurrency sector in
UPS-Backed Blockchain Consortium Seeks to Disrupt the Freight and Logistics Industry
As blockchain becomes ubiquitous across consumer and enterprise applications, we will continue to see more and more large scale disruption of traditional sectors that are critical parts of the global
Manhattan’s Real Estate Eyes Up Bitcoin for Property Payments
Manhattan’s real estate market is embracing bitcoin for property payments as the digital currency increases in value.
One property developer who is hoping to capitalise on the recent digital curren
Karpeles Looks to Revive MtGox, Seeks $245 Million
Does anyone have $245 million to revive MtGox? Mark Karpeles, who has pleaded not guilty to charges of money laundering and embezzlement, claims reviving MtGox offers a way to allow creditors to get s
Billionaire Investor Novogratz: Ethereum En Route to New All-Time Highs
Mike Novogratz, the billionaire hedge fund investor and former executive at Fortress, believes Ether, the native cryptocurrency of Ethereum, is poised to achieve new all-time highs in the short-term.<