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New Bitcoin Code Will Finally Boast Full SegWit Support

New bitcoin code will finally boast full segwit support

New Bitcoin Code Will Finally Boast Full SegWit Support

New bitcoin code will finally boast full segwit support

Segregated Witness (SegWit) is special.

And it’s not just because the bitcoin code change is focused on scaling the network (it is), or that it paves the way for a new layer for the tech that’s potentially faster and cheaper (it does).

Finally activated last August after months of controversy, SegWit is now spurring developers to put together a more structured, “themed” release for the software, an unusual development for the team behind the world’s oldest and most valuable cryptocurrency network.

Most of the time when bitcoin Core introduces new changes to the cryptocurrency’s code, the loose group of volunteer developers simply combine disparate optimizations together. But this coming code release, 0.16.0, the sixteenth “major release” since bitcoin began, is a bit different.

Set to launch in the coming days, the updates all revolve around SegWit – with most focusing on making it easier to send SegWit-style transactions from the software’s default wallet.

So, while the first software rollout of SegWit was about making sure the network understood the new rules, 0.16.0 is all about making it possible for users to take advantage of their benefits.

bitcoin Core contributor Andrew Chow told CoinDesk:

“The primary change is the addition of SegWit in the wallet. This lets users to easily create SegWit addresses.”

SegWit galore

Toward that goal, Chow explained that SegWit features have been added to both the command line set and the wallet user interface, so both programmers and non-programmers can use it.

Chaincode Lab engineer and bitcoin Core contributor Marco Falke noted that while it was possible to create SegWit addresses in prior wallet versions, the process was “rather hacky” and “mostly hidden.”

Now, though, with the software release, SegWit addresses will be the default, meaning that new addresses are automatically compatible with the scaling feature.

Version 0.16.0 is also the first release to support “native SegWit addresses,” also called bech32 addresses, a new address format pioneered by bitcoin Core contributors Pieter Wuille and Greg Maxwell that’s more user-friendly than older addresses types and supports SegWit automatically.

According to Falke, “That is the most exciting part of the release.”

With SegWit addresses being created automatically, wallet users should soon experience lower fees. And progress there could have wider implications.

bitcoin Core first introduced SegWit inNovember 2016, and the battle that followed prompted some software users to support acompeting cryptocurrency that did away with it altogether. (Called bitcoin cash, the network’s supporters have long argued that bigger blocks, in which more space is allotted for transactions, is the key to lower fees.)

And according to Chow, one advantage of the native SegWit address format is that fees are a bit lower, although he acknowledged that because the format is so new, most wallets don’t currently support it.

Chow said that other pieces of the release give users more flexibility over their bitcoin Core wallet. For example, users can store their wallets, or private keys, in another data directory if they want to.

For the more tech-minded, check out the release notes for more details.

Long time coming

Stepping back, the release could also help with SegWit’s sometimes troubled messaging, as its adoption has been perhaps slower than anticipated by advocates.

Indeed, while updating the code of a global software program perhaps shouldn’t necessarily be a fast process, users have complained because even some major companies have yet to adopt it.

With this backdrop of user anticipation and impatience in mind, many might be surprised that it’s taken bitcoin Core so long to add support in its wallet for the transaction type. But developers contend there are a couple reasons for the delay.

First, the team says it wanted to see how SegWit actually worked on the network for a bit before supporting it, in case there were security vulnerabilities or other concerns, said Chow. Second, politics were a distraction as well.

While the software release before this one, 0.15.1, was supposed to boost the wallet’s support of SegWit, developers claim a planned alternative bitcoin software launch, scheduled for November 2016, is partly blame for delaying the focus and redirecting efforts.

Binary code image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at news@coindesk.com.

Published at Tue, 20 Feb 2018 04:05:03 +0000

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Ether Price Analysis: Price Movement Shows Strong Market Value

Ether Price Analysis

What the heck is happening in the crypto world?  Is Ethereum finally dead?  Is ETH taking its last breaths?

Not likey. In fact, the recent pullback on the ETH-USD market is probably one of the best and healthiest things investors and traders could have asked for. Given ether’s 300% price rise in just over a month, this pullback has a left many traders and investors bullish on the ETH-USD market.

On a macro-scale, we can see ETH-USD had a very nice, textbook market correction along the 50% Fibonacci Retracement Line (shown in brown).  This test of the 50% line was immediately rejected and is illustrated by the massive spike in volume (shown in blue).  

For healthy, growing markets 50% retracements are a very common occurrence, and the market response to the retracement can be viewed as a sort of litmus test for the strength of a market (i.e. a positive rejection of the 50% line with upward price action tends to indicate the market still desires higher prices, and a negative move from the 50% line will typically indicate the market is still extended and thus overvalued).

ETHUSD Macro View.png

Figure 1:  ETHUSD, GDAX, 12HR Candles

Looking at the micro-trend, we see the strong price rejection bounced off the 50% Fibonacci Retracement Line and is currently in the process of forming what is known as an “Inverse Head and Shoulders” pattern. This pattern gets its name simply because it has the following, easily identifiable characters:

  • A well defined neckline (shown in yellow)

  • A break of the descending trend line (shown in brown)

  • A left shoulder, a head which makes the lowest peak, and a right shoulder

  • A re-test of the neckline (at the time this image was made, the market was testing the neckline)

  • Finally, to confirm the reversal pattern, volume usually needs to increase after the re-test of the neckline to gain strength in the upward movement.

ETHUSD Micro View.png

Figure 2:  ETHUSD, GDAX, 30Min Candles

This sort of pattern is often traded in FOREX and stock markets because it is seen as a reliable and predictable indication of future price movement.  Typical price projections for Inverse Head and Shoulders are easily calculated with the following formula:

Price Movement = Price of the Neck Line (~$350) – Price of the Head (~$250) = ~$100

Price Target for Trend = Price Movement + Neck Line Price = $450

Given the strength of the macro-trend’s rejection of the 50% Fibonacci Retracement Line and the current pattern forming on the 1-hour charts, we must then look to other indicators to give us further market insight. Two commonly used momentum indicators, RSI (Relative Strength Index) and the MACD (Moving Average Convergence Divergence), show us that the price increase from the initial, aforementioned 50% Fibonacci Retracement Line rejection is welcomed with a rising trend on both momentum indicators; this shows us that the price growth still has upward momentum.

Summary:

  1. Although the sudden price drop was a bit terrifying for many investors and traders, it was much needed and has now shown the strong market value of ether.  

  2. Now that we have proven the strength in the market, it is very likely we will see new price highs in our future before we see further tests of lower prices.

  3. On a macro level, ETH-USD sentiment still remains bullish; on a micro level, we are seeing strong indications of a trend reversal from the sudden bear market over the past few days.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

The post Ether Price Analysis: Price Movement Shows Strong Market Value appeared first on Bitcoin Magazine.

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