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If you have followed the news of the Bitcoin blockchain, you have surely read an immeasurable amount of news predicting a hecatomb and the irreparable collapse of the main cryptocurrency. Much of the information and concerns, it must be said, are based on the events that occurred with the separation of the Ethereum. However, the Bitcoin does not have to follow the same fate of the Ethereum, although we should not for that reason sin for trusting.

What will happen on August 1st?

The SegWit represents the next step in the scalability of the Bitcoin blockchain, which consists in updating the protocol and the software used by both the miners and the independent nodes. The Segregated Witness update (SegWit) contemplates some changes in the management of the blocks. The main changes are the following:

Eliminate the cryptographic signature of the one who authorizes the transactions of the blocks to give space to more transactions without having to increase the size of the block. As a result, more information can be stored in the blocks without having to increase the capacity of the blocks.
It will allow to store the information in side chains resulting in an increase in the processing capacity of the transactions in the network.
So far everything seems very promising, the problem is that the implementation of the changes has a lot to do with the future of the Bitcoin network. There are groups that propose the increase in the size of the blocks from 1MB to 2MB, which in the long term will end up eliminating the possibility that independent nodes can participate in the support of the network by requiring more resources.

Until the 1st of August, when all the software will be updated, it is not known if there will be a bifurcation resulting in two different currencies, and for this reason we must be prepared for any eventuality.

What steps to take before August 1?

The first thing is that we must mobilize all our cryptocurrencies to portfolios where we can control private keys. Examples of these portfolios are Jaxx and Exodus, which are multi-platform programs with a good reputation and allow managing multiple cryptocurrencies. If they have a portfolio in hardware, much better.

The objective of having our cryptocurrencies in portfolios over which we have more control, is that we will not depend on the decision made by the online portfolios or exchange houses about which chain of blocks to begin accepting in the event of a fork. This would put us at risk of our transactions remaining in the chain that does not prevail.

It is also recommended that those people who are receiving payments in Bitcoins, stop doing so at least during the 48hrs prior August 1st. In fact, bureaux de change will stop receiving payments in Bitcoins before July 31st.

What to do during the activation of the SegWit?

They will be difficult days, we will see a lot of volatility of the currency and a considerable contraction of the market. That is why it is important that at least during the first 48 hours after activating the SegWit, consider not sending or receiving payments. A transaction in this period may have many confirmations, but the payment may end up disappearing if there is a problem with the two chains that could be formed.

Users should be more aware of the scam. It will be a time where opportunists and fraudsters will be working overtime taking advantage of the uncertainty of the users. In this sense it must be said that it is also prudent to keep calm and not be surprised by price fluctuations or make hasty decisions. Any official information will be communicated officially and we will inform you of the means that we are committed to the user.