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Solution 2 will deal with scaling by allowing for more information to be processed every 10 minutes. .

In July 2017, bitcoin miners and mining companies representing roughly 80% to 90 percent of their networks computing power voted to incorporate a program that would decrease the amount of information needed to confirm each block. That is, they went with Solution 1.

The program which miners voted to increase the bitcoin protocol is known as a segregated witness, or SegWit. This term is an amalgamation of Segregated, meaning to separate, and Witness, which describes signatures on a bitcoin transaction. Segregated Witness, then, means to separate transaction signatures from a block and attach them within an extended block.

Less than a month later in August 2017, a group of miners and programmers initiated a tricky disk, leaving the bitcoin network to create a new currency using the same codebase as bitcoin. Though this group agreed with the need for a solution to scaling, they feared that adopting segregated witness technology would not completely address the scaling issue. .

Instead, they went with Solution 2. The resulting currency, known as bitcoin cash, increased the blocksize to 8 Mb in order to accelerate the verification process to permit a performance of around two million transactions per day. At the time of writing, Bitcoin Cash is valued at $545.00 to Bitcoins $6,328.11.

The Trezor: January 4, 2016: 7.4 BTC $3,000In January 2016, I spent $3,000 to purchase 7.4 bitcoins. At the moment, it looked an entirely worthwhile thing to do. I had recently started working as a research director in the Institute for its Futures Blockchain Futures Lab, and I wanted firsthand experience with bitcoin, a cryptocurrency that employs a blockchain to list transactions on its network.

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It was surprisingly simple to buy stuff with the cryptocurrency. I used the airBitz program to purchase Starbucks credit. I used Purse.io to buy a wireless security camera doorbell from Amazon. I used bitcoin in Meltdown Comics in Los Angeles to buy picture novels.By November, bitcoins value had nearly doubled since January and was continuing to increase almost everyday.

Id other been keeping my bitcoin keys on a web-based wallet, however I wanted to move them to a more protected location. Many online bitcoin services retain their clients private bitcoin keys, which means the accounts are vulnerable to hackers and fraudsters (recall the time Mt. Gox lost 850,000 bitcoins from its customers accounts in 2014) or governments (like the time BTC-e, a Russian bitcoin exchange, had its domain seized by US District Court for New Jersey in August, freezing the assets of its customers ). I interviewed a handful of bitcoin experts, and each of them told me that that safest way to safeguard your cache was to use something referred to as a hardware wallet.

I settled on a hardware wallet known as the Trezor (that the Czech word for secure ), described by the manufacturer as bulletproof. I purchased one on November 22 for $100 on Amazon (again, via Purse.io).When the Trezor arrived, I plugged it into my computer and went into the Trezor website to set it up.

The site instructed me to write down 24 words, randomly generated by the Trezor one word at a time. The words go to the website were like aware, proceed, fashion, and bitter. I wrote them on a sheet of orange paper. Next, I was prompted to make a PIN. I wrote it down (choosing a couple of short number combinations I had been familiar with and may easily recall) on precisely the exact same piece of paper since the 24-word list.The Trezor website explained that these 24 words were my retrieval words and could be employed to generate the master private key for my bitcoin.

It was important for me personally to keep the paper hidden and safe, because anyone can use it to steal my 7.4 bitcoins. I transferred my currency from my web-based wallet to my Trezor, tossing the Trezor and the orange piece of paper into a desk drawer in my home office.

I was going to do it right after the holidays.The Mistake: March 16, 2017: 7.4 BTC $8,799It was 6:30 in the morning. My 14-year-old daughter, Jane, was in London on a school trip, and my older daughter, Sarina, was at college in Colorado. My wife Carla and I were getting ready to depart for the airport to take a vacation in Tokyo.

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What should I do with this When our plane plowed into the ocean, Id want my daughters to have the ability to get the bitcoins. The coins had nearly tripled in value since I bought themand that I could imagine them being worth $50,000 one day. I took a pen and wrote on the paper:Jane, when anything happens, reveal this newspaper to Cory.