What is BIP148
Jul 23, 2017 Posted / 4921 Views
In today’s world where everyone is indulged into money-making and investments, we often get fooled or trapped by certain false polices and promises. They appear to be appealing and trustworthy at first, therefore it is highly recommended to read the documentations and the sites clearly so as to prevent one-self from being cheated on.
Not everyone is familiar with this new trend of investing and transforming the money into some other form and eventually increasing its value. This can be referred to as Currency of The Internet, popularly known as ‘BitCoin’. It is a distributed, decentralized and world-wide accepted form of an online currency which has no face or physical existence of its own but can be a savior in payment modes. Where dollars and other currencies are under well monitored and planned governance, Bitcoins are free from any central authority or bank supervellience. It is often said that you are your own bank when it comes to Bitcoins. Therefore, it may be risky at times.
It basically follows a format, according to which the user can exchange a certain amount of his money with Bitcoins and thus use them for payment process. Unlike other form of currencies which have fixed values for interchanging, these Bitcoins have no certain fixed ratio of the value-rise. It is just like the Gold Market. You can never imagine what it going to come next. With these salient feature of investing money and multiplying it, the probability of getting duped increases.
In order to assure safety of the Bitcoin users so that they don’t get double-crossed (during buying or selling); BIP148 has come to the rescue. It is basically a modification of the Bitcoin programs. It is going to obtain recognition in August 1.
BIP stands for Bitcoin Improvement Proposal; which is a set of certain norms and proposals under which the Bitcoin users are asked to activate a user activated soft fork (USAF). Specifically, they will reject the Bitcoin Blocks that do not signal support for SegWit (Segregated witness) which basically is the Centerpiece of Bitcoin Core’s sacling roadmap.
In case if the majority of the miners do not signal support Segwit on 1st August, the Bitcoin’s Blockchain will split into two parts in that case. Therefore there will be two kinds of Bitcoin tokens, which will be referred to as “148 BTC” for those who activate the soft fork and “Legacy BTC” for those who did not activate the soft fork in this article.
The best part is that each bitcoin would effectively be copied to both the bitcoin chains which mean that if a person holds the bitcoin right now then he/she shall hold both 148 BTC and Legacy BTC simultaneously.
The riskiest part is the uncertainty in the increment of funds; if the person isn’t careful enough, he/she have fair chances of facing the loss with funds.
Moreover, in order to overcome any severe scenario of loss; it is said to ensure that you have your own private keys. For instance, if you are storing your bitcoins in an exchange, in a custodial wallet like Circle, Xapo, Coinbase or any other services which hold private keys for you, you may not receive coins in both the ends of the chain. In case of any unprepared or sudden situations, chances are there that you may not get any coins. Therefore, prepare a wallet of your own.
If a majority of power signals support for Segwit on or before 1st August, the protocol upgrade will activate smoothly even if you aren’t prepared for it. Therefore, there is less risk in that case.
First of all, it should be very clear that chain – split creates a high risk situation. Perhaps, there may be some sort of cyber- battle between the two camps that are 148 BTC and Legacy BTC which may lead to extreme drop in the bitcoin rates, even zero. Therefore, it is clearly mentioned to invest the same amount of money in bitcoins which you don’t face much problem in losing.
But until and unless any major issue of this type takes place, the Legacy BTC can be overtaken and discarded.
It is said that buying or holding the Legacy BTC after the split may be risk – taking and therefore it is suggested to be prepared for this situation as 148 BTC can overtake Legacy BTC any time. So, if you accept Legacy BTC you should be aware of the fact that you are doing something which may turn out to be the reason behind your complete loss.
148 BTC is supposed to never accept the Legacy BTC; therefore, even this turns out to be something precarious. There is no guarantee that 148 BTC will be continued in the usage. Due to a potentially hostile environment, slow mining difficulty adjustments, and the possibility of Segwit to admit Legacy chain is guessed to be the the reason behind this severe uncertainty.
There is also a situation under which both the chains that are 148 BTC and Legacy BTC, coexists. Under this you will have shares on both the sides of the coin and hence making this the wisest decision of your life.
It is more likely to see some exchanges to set up coin – splitting services so as to make the entire process easier for the Bitcoin users.
Overall, it is asked to take proper care while using and investing the shares in the bitcoin market, make sure that you have your own private keys, take a pause and try not to indulge in any immediate transaction using the bitcoins on or after 1st August, in case if both the two splits that are 148 BTC and Legacy BTC sustains, make sure you have separate wallets for both of them. These small preventions may safeguard you from any upcoming danger or unwanted troubles which we don’t what ourselves to get trapped into. Hence, it is always required to properly overview the merits and demerits before investing in any new firm / site.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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