Bitcoin furore over new XT version

Users of the Bitcoin virtual currency are reportedly unhappy with the new Bitcoin XT version developed by Mike Hearn and recommended by the currency’s chief scientist, Gavin Andresen…but the latter says that consumers are starting to come round to the idea, with 10 percent of the network embracing the new product within the last few days.

There are however still fears that changing the software could split the virtual currency, although Hearn says its adoption is essential to ensure the currency can cope with growing demand.

A large number of bitcoin miners in China, are resisting XT due to concerns on how it may affect control over the currency, according to a BBC report Tuesday..

Bitcoin’s blockchain – a digital ledger of all transactions made with the currency – is currently made up of 1MB blocks.

Bitcoin XT would enable these blocks to grow to 8MB.

Detractors point out that this would mean XT was no longer compatible with existing Bitcoin software, creating two separate currencies and eroding trust in both.

Hearn told the BBC that the Bitcoin community’s reaction to the release of the XT software at the weekend had been mixed, but there were some encouraging signs.

“We’ve gone from zero people running the software to 10 percent of the network in 72 hours, which is really good,” he said, adding that a number of Chinese mining groups are resisting XT unless it is unanimously adopted by the core team.

Hearn said he had decided to force the issue in order to overcome the stalemate, saying that consensus in the core team remained elusive.

“If you look at the guys working on the Bitcoin core, they talk about consensus all the time – but if you ask them what they really mean, they can’t tell you,” he said, acknowedging that the reduced control developers have under XT could mean splitting the currency if agreement could not be reached.

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