important part of the network to incentivize miners in processing and validating your transactions into the network. Scalability is defined as the capacity for a system or network to grow in size and manage increased demand. One of the solutions proposed early on was to just increase the size of the blocks. SegWit2X was introduced in 2017 as an extension of the original SegWit, which would use SegWit and increase the block size to 1MB. Bitcoin is often seen as too slow and too expensive.
Bitcoin scalability problem - Wikipedia
Bitcoin scalability problem - Bitcoin Wiki
Alternatively, the client-server relationship in a centralized system requires processing of the transaction in just a single instance. Some have reportedly waited in excess of hours and even days just for confirmation of their transactions! On November 8, 2017 the developers of SegWit2x announced that the hard fork planned for around November 16, 2017 was canceled for the time being due to a lack of consensus. By the evening of, BCH had the third highest market capitalization of any cryptocurrency (after BTC and Ethereum). Five years ago, an average Bitcoin transaction requires less than.05 of transaction fees but at the networks peak back in December 2017, the average fees reached an average of 40! The implementation of Segregated Witness in August 2017 was only the first half of the so-called "New York Agreement" by which those who wanted to increase effective block size by SegWit compromised with those who wanted to increase block size by a hard fork. Each block on the chain contains 1MB worth of transaction records.