Is Your Money At Risk In A Mobile Wallet?

Little known to many bitcoin wallet users, their wallets have been at a higher risk going into the end of the year.

Mobile wallets are basically tools that users can rely on to improve their experience with the cryptocurrencies. They are claimed to make the entire process more like an actual financial institution. Wallets today, typically complete transactions via the blockchain technology. Although, in a way – it actually differs from normal wallet options. But at the end of this year, construction has proved to cause some serious turbulence. Because now, the bitcoin protocol is aiming to undergo some major changes to its current software.

It followed the activation of Segwit, a group of businesses that have been seeking to push for a hard fork release. The purpose is to increase the size of the blockchains used on bitcoin. They are looking to expand the transaction capacity of the platform. The code is used on a much larger part of a massive upgrade known as Segwit2x. This could potentially lead to bitcoin splitting into two yet again. Of course, that is only if people push against supporting the upgrade.

There is a difference however, differing it from the likes of bitcoin cash, Segwitx2’s programmers have done all they can to ensure all of bitcoin’s users stay on a single blockchain. The lead developer of Segwitx2, Jeff Garzik spoke to Coindesk:

“The design goal of Segwitx2 – just like the latest Ethereum Fork – is to upgrade bitcoin, not create a new currency.”

To do so, developers who back the project – must have made more than a few important design decisions that coincide with maintaining compatibility. Although some of these decisions may be a bit controversial, they are still simplifying the way payments are verified in wallets. Thereby, improving the technical term for any wallets/applications used on a mobile device for bitcoins.

However, developers have argued that there are many pros and cons on how they are going about accomplishing all this. First off, it may not be entirely safe to use the apps for mobile wallet users. Especially if they are looking to make instant transactions as soon as the hard fork is instated.

Resistance for attack or convenience?

The decision is omitted so-called, replay protection. It’s a type of political term, one that is used to describe the process when blockchains split in two. The issue is that out of nowhere, one user now has value on two different blockchains. After that happens, the users then have to move all tokens to one blockchain or “replay.”

What is the Solution?

Developers have been arguing how to best handle the situation. Many argue that Segwitx2 will give wallet users more control over the bitcoin they end up with. Segwitx2 developers also make note, that the change would make it harder for users to transition to blockchain technology. It is possible it could confuse users, making them unaware of any situations to lose money.

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