Segwit2x developer Jeff Garzik removed from Core codebase

The Bitcoin scaling debate heated up over the weekend with a controversial blog post from payment processor BitPay. In it, the company urged users to upgrade their nodes before Segwit is activated to avoid security risks. The controversy was that they directed people to download the btc1 node, which is the node deployed by Segwit2x. BitPay signed the New York Consensus, so it’s not surprising that they want to promote btc1. However, many celebrities accused BitPay of taking confusing and even deceptive means to achieve their goals. BitPay was removed from Bitcoin.org as a result.

Jeff Garzik removed from Core codebase

On the same day, Segwit2x developer Jeff Garzik was removed from Bitcoin Core’s Github codebase. Garzik tweeted that his removal represented an “act of retaliation.”

This result is not surprising; Peter Todd pointed out that Garzik opposed Core’s stance on scaling and has not made a significant contribution to the codebase since 2014.

But the timing of Garzik’s removal is important. He could have been removed at any time in the past few years for inaction, but he was removed during a period of intensified tensions between the Core and Segwit2x factions. Segwit2x supporters, who control a large amount of network computing power, say that once the Segwit2x hard fork is executed in November, the Core version of Bitcoin will become a “non-functioning minority chain.” Core supporters believe that Segwit2x is an altcoin (some also call it Jeffcoin) or a corporate attempt to take over Bitcoin.

Lack of replay protection

The issue of replay protection has also led to heated discussions. Replay protection ensures that two blockchains and currencies with shared histories remain separate. Without such protection, an attacker could launch a replay attack and broadcast transactions on both chains simultaneously. Bitcoin cash, for example, has implemented this safeguard to prevent replay attacks after a hard fork, and has adopted a new name (somewhat) to avoid confusion.

With the Segwit2x fork in November, it is likely that two different versions of the Bitcoin protocol will emerge again. This time, both will insist that they are the real "Bitcoin." Users and exchanges will have to sort out this mess.

The lack of naming distinction will cause confusion, but there are still many problems to be dealt with. Currently, Segwit2x has not committed to deploying replay attack protection in the btc1 protocol, which means that Bitcoin Core will have to add protection to the "old" chain. Core recently criticized this position in a blog post:

It would be irresponsible to ignore the consequences of such events when planning for the future. We have already seen what can happen when the same address is valid in two chains. The Segwit2x protocol attempts to repeat the same mistake. In addition, the replay attack protection deployed by BCH provides protection for both BCH and Bitcoin users, but Segwit2x does not plan to deploy this feature.

If the two development teams remain deadlocked, the only ones who will suffer in the end are the users.

As the expansion problem "recurred", the price of Bitcoin also fell. Since August 17, the price of Bitcoin has fallen from a high of $4,467 to a low of $3,998.