As we all know by now BIP 91 reached the threshold for activation and that now leads us to the next obstacle. SegWit still is not activated and we are going to try and make things a little clearer.
What is BIP 141 and SegWit?
Segregated Witness or SegWit for short, is defined in BIP 141 that requires 95% of miners to mine blocks signaling support using bit 1 in their newly created blocks. SegWit is a scaling proposal that offers a bit of enhancement to the ability Bitcoin will have. If you want to learn the super nitty gritty details take a look at the white page, all the average person needs to know is Bit 1 must be included in blocks that support SegWit.
What is BIP 91?
BIP 91 is a proposal that is trying to force SegWit to activate before BIP 141 did. BIP 91 only required 80% of miners to support by signaling support using bit 4 in their newly created blocks. We have reached that consensus and BIP 91 will activate the requirement in the next few weeks for all miners to reject blocks that do not signal Bit 1 (SegWit).
What does this all mean?
In simple concepts this means that although many miners signaled support for BIP 91, many do not have their software in place to actually mine SegWit blocks. Many miners also may decide not to support BIP 141 and continue to mine blocks without any added bits. If the majority of mining power decides not to activate SegWit, the miners that do activate will generate blocks that become incompatible with the existing chain. Which ever chain gains most support should become the "real" Bitcoin, however an even split of power could cause a backlog of transactions and lead to 2 versions of Bitcoin existing!
Summary
If you are in Bitcoin (as I am) make sure to keep your coins stored offline in a secure wallet you control the private keys in. Do not make any transaction starting ASAP until after this all sorts out to avoid loosing funds. Get ready for a potentially bumpy ride or a smooth transition and network upgrade! I am betting no matter which outcome happens, Bitcoin will become stronger in the long run for it!
Let me know below what your thoughts are as we navigate this sea together! Keep HODLING!