on or about 16th of November 2017, approximately 90 days after segwit activation, bitcoin network will split into 2 independent branches: Bitcoin Core and Bitcoin Segwit2x (this will happen when block 494784 is mined). Segwit2x aims at increasing the current 1MB bitcoin block size to 2MB. Bitcoin Core will keep 1MB blocks.
Here is a brief summary of the history leading to this occasion.
Satoshi Nakamoto released first bitcoin software in 2009 and there was no block size limit for Bitcoin, except that implied by the 32MB message size limit. Later at the end of 2010, Satoshi decided to change the limit to 1MB, which was plenty enough at that time. The reason for such constraint was fear of network congestion that could be caused by spam attacks (it was possible to broadcast transactions containing no fee).
Since then bitcoin increased in popularity and transaction limits started to hit the constraint set back in 2010. Majority of the bitcoin infrastructure today relies on the referential software client Bitcoin Core (currently representing about 64% of all bitcoin nodes). And a part of the bitcoin community is raising concerns that there is no immediate solution to the now constant congestion of the bitcoin network.
So what is next?
Even though the bitcoin network operates at 100% of its capacity since January 2017, the Core developers are not in favor of the block size increase claiming that Bitcoin’s consensus rules should only be changed sparingly and with broad agreement from the entire community.
This opinion is at odds with the Segwit2x initiative. On 25th May 2017 58 companies from 22 countries, (representing 83,28% of hashing power) agreed to upgrade the bitcoin protocol to so called Segwit2x, which in effect should increase the block size to 2MB causing a so called hard-fork.
We at CoinMate will approach this situation responsibly and we will offer our clients the opportunity of choice. On the day of the split we will make a bitcoin balance snapshot and we will credit all clients owning bitcoin the same balance also in the other network. There is no action necessary on your side. Your bitcoins will be safely stored and access to bitcoin balance on both networks will be granted after the split as soon as it is safe.
Our planned procedure will be as follows:
All bitcoin deposits and withdrawals will be disabled 24hrs prior to the split
All trading will be intercepted approx. 1 hour prior to the split
Individual bitcoin account balances snapshot will be made
Trading will be restarted, the legacy chain will remain to be called BTC, the new chain B2X
You will be credited B2X balance and deposits and withdrawals will be enabled once it is safe to do so.
we are glad to announce a new release of the CoinMate exchange portal. In order to perform the update, CoinMate.io service will undergo planned maintenance on Tuesday 19th September from 10pm to 11:55pm CET.
Bank withdrawal processing
In response to the increased demand for faster bank withdrawals, we are rolling out withdrawal templates and automated processing. Starting 20th September 2017 we will be processing bank withdrawals twice a day. First batch of payments will be processed at or about 11am and the second batch at the end of the business hours.
Improved Trade screen
Market stats and user trade history will be added to the Trade screen, everything elegantly packed for even better trading experience.
Security enhancement and API add-on
An extra security feature will be added to the password recovery process. And our API will be expanded with a new Order history call.
After improving our database and server infrastructure in the previous months, it is now time to introduce new trading pairs (Litecoin will be introduced in late October). We are also happy to announce that more trading pairs will follow shortly after Litecoin deployment.
We are resuming deposits and withdrawals after the Bitcoin hard fork. Bitcoin network appears fast and smooth. We made snapshots, backups and audit of all bitcoin balances on our hot and cold wallets in case we eventually add BCH into our trading platform in the future.
It is very likely that on 1 August 2017 around 2:20 CET, the bitcoin network will be divided into two separate currencies. CoinMate will continue to support the current bitcoin, the bitcoin with the highest overall support across the community. Any second, “hardforked” branch i.e. so called Bitcoincash will not be supported at this time.
If you also want to deal with bitcoins in the other, “hardforked” network, you will need to withdraw bitcoins from our exchange into a bitcoin wallet that will allow you to transact bitcoins on both networks, or into a wallet that you hold private keys to. In such case make the withdrawal as soon as possible so that the payment can be confirmed in the new wallet no later than 1 August 2017.
At the same time, the BIP91 proposal has been activated. Under this agreement miners now reject blocks that do not signal Segwit. Due to the precautionary principle and the protection of our users, we will require 6 bitcoin confirmations for bitcoin deposits starting 28 July, 2017.
To ensure safety of bitcoin balance in your CoinMate account, we will disable bitcoin deposits and bitcoin withdrawals starting 1 August 2017 10am CET. We plan to resume bitcoin deposits and bitcoin withdrawals in the morning of 2 August 2017, if it is safe to do so. Trading will not be affected and will remain active throughout the whole time.
Dear Coinmate users, we will be performing server upgrades with high performance hardware today from 20:00 to 21:30 CET. Server upgrade was necessary to reduce recent timeout API problems. It will also speed up the response on our website.
As the price of bitcoin reached 1000 EUR this week, big slump to 880 EUR followed on Thursday as a reaction to news from China. Two major Chinese exchanges (Huobi and OKcoin) suspended bitcoin and litecoin withdrawals for one month, effective immediately. Officially this is due to money laundering precautions. Both exchanges are supposed to make upgrades to their AML procedures to combat illegal transactions, pyramid schemes and other illegal activities. Unofficially it could be a measure for capital controls as the Chinese government is trying to limit capital outflows from the country. Technical analysis shows continuous uptrend but buyers may get exhausted soon, which may send the price even lower. More on technical analysis can be found here: http://www.newsbtc.com/2017/02/09/bitcoin-price-technical-analysis-02092017-whats-up-with-that-sharp-drop/