What happened?
The Bitcoin SegWit upgrade, which occurred eight years ago, was a significant change to the Bitcoin network that resulted in the creation of Bitcoin Cash. This event is known as “Bitcoin Independence Day” and was crucial in reducing the influence of large mining pools and introducing scalability improvements such as the Lightning Network. The upgrade was a result of a community debate over block size, which ultimately led to a split and the launch of Bitcoin Cash with larger blocks.
Who does this affect?
This affects both Bitcoin and Bitcoin Cash users, as well as the broader cryptocurrency market. For Bitcoin holders and enthusiasts, the SegWit upgrade solidified BTC’s path toward decentralization and scalability. On the other hand, Bitcoin Cash aimed to attract users looking for faster transactions but has witnessed limited adoption compared to Bitcoin.
Why does this matter?
The SegWit upgrade and the resulting split into Bitcoin and Bitcoin Cash have had long-lasting impacts on the cryptocurrency market. Over the past eight years, Bitcoin has significantly increased in value and maintained its role as a dominant digital asset. Meanwhile, Bitcoin Cash has struggled to match Bitcoin’s adoption and market performance, illustrating the consequences of the differing visions for blockchain development within the community.