Cryptocurrency traders are warning that any Bitcoin that is released after the end of this month could disappear from its owners' wallets or have the transaction rejected by others, as a phenomenon they call a "chain split" will occur.
Bitcoin.org, a community associated with the virtual currency, said Thursday that the Bitcoin network has facilitated hundreds of millions of transactions to date.
The blockchain, an electronic ledger that records and tracks every cryptocurrency exchange and trade, is based on this network, which consists of thousands of Bitcoin nodes running the Bitcoin software.
However, planned network improvements in the coming weeks could disrupt it, leading to what is called a “chain split,” an event in which some Bitcoin nodes will run on software that other nodes are incompatible with for a period of time.
“As a result, some nodes may broadcast confirmed transactions that other nodes may not accept or recognize,” Bitcoin.org warns.
“This could lead to an unreliable confirmation score for an unknown period of time. This means that any bitcoins you receive during this period could disappear from your wallet or be a type of Bitcoin that others will not accept for payments until the issue is resolved.”
As noted by The Register, the event is necessary for Bitcoin Improvement Proposal 148 (BIP 148), an attempt to introduce revised code, also known as SegWit, to increase Bitcoin's size and upgrade scripting.
Once the updates are made, the confirmation score will (hopefully) return to normal.
However, there is also the possibility that we could see one or more Bitcoin versions circulating simultaneously as a consequence of the chain splitting, which in turn could disrupt transactions.
So everyone who uses Bitcoin should stop accepting payments at least 12 hours before August 1, 01:00:00 GMT + 0100. However, Bitcoin.org recommends stopping payments from July 30 for security reasons.
