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Xapo Announces Plans to Upgrade to Bitcoin Classic

Popular bitcoin wallet platform and vault storage service provider Xapo has announced their plans to embrace Bitcoin Classic, a Bitcoin block size increase proposal by 2 megabytes.
Bitcoin in the Words of Intesa Sanpaolo Ferdinando Ametrano. newsbtc

On February 21, 2016, popular bitcoin wallet platform and vault solutions provider Xapo CEO Wences Casares announced that the company is planning to upgrade to Bitcoin Classic, with a vision to help the Bitcoin network scale efficiently.

Bitcoin Classic is a hard fork bitcoin block size increase proposal currently supported and led by Bitcoin Core developers Gavin Andressen and Jeff Garzik, and industry leaders including Coinbase and Circle. If Bitcoin Classic achieves the 75% support threshold and becomes successfully implemented, the Bitcoin block size will be increased to 2 megabytes immediately, hence the name hard fork.

However, the announcement of Xapo has become controversial amongst the community and existing Xapo users, because the implementation of Bitcoin Classic could lead to a split chain, an event in which two Bitcoin chains co-exist in the same network. Historically, if two Bitcoin chains co-exist in the same network, the minority becomes eliminated almost instantly, unifying to one single chain. Thus, if Bitcoin Classic overtakes the Core chain, the Bitcoin network would be unified to the Classic chain that is controlled and maintained by another team of developers with a separate vision.

Because of this possibility, Xapo users have begun to call the move of Xapo a “anti-Bitcoin camp,” as in theory, eliminates the existing Bitcoin chain and creates a separate coin developed by a separate entity.

Xapo users have also begun to question the motivation and intent behind Xapo’s decision to support Bitcoin Classic and overall scaling of the Bitcoin network considering their absence in various scaling conferences and round tables held in Hong Kong and Montreal during the past few months.

Still, many bitcoin enthusiasts in the community are praising Xapo’s attempt to help the scaling of the Bitcoin network and initiatives led by leading companies such as Coinbase and Circle.

@wences Awesome to see Xapo continues to deeply understand bitcoin as ideal-money, with low-friction & adoption network-effect being key.

— Dan McArdle (@robustus) February 21, 2016


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Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He's worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.