ANOTHER BITCOIN NEW YORK AGREEMENT PARTNER CANCELS SEGWIT2X SUPPORT

Last updated: June 19, 2025, 20:07 | Written by: Barry Silbert

The turbulent history of Bitcoin scaling debates reached a fever pitch in 2017 with the proposed SegWit2x hard fork, an agreement initially forged through the New York Agreement (NYA). SegWit2x was a proposed software upgrade designed to upgrade the block size limit and improve the overall transaction processing speed of Bitcoin. Although it was presented as a hard fork of theThis ambitious project, intended to increase Bitcoin's block size and improve transaction speeds, aimed to resolve long-standing scaling issues within the network.However, the road to SegWit2x was paved with controversy and disagreement, highlighting the challenges of achieving consensus in a decentralized ecosystem.Now, let's dive into the complexities surrounding SegWit2x, examining why it ultimately failed and how its demise reflects the broader dynamics of Bitcoin governance. A picky look at the B2X (SegWit2x) project shows that it is not trying to update the Bitcoin Protocol, but creates another Altcoin that will trade the bitcoin brand. For starters, the development team of this project is quite different than the one that worked on the initial proposal, which was led by Bitcoin Core developer Jeff Garzik.From its initial promise to its eventual cancellation, understanding SegWit2x provides valuable insights into the evolution and resilience of Bitcoin as a digital currency. Now that SegWit has already been locked-in and we have Bitcoin Cash as a result of the Aug. 1 hard fork, many are left wondering what was the point of the New York Agreement. Bitcoin2x is goingThe cancellation of Segwit2x sent Bitcoin's price to record highs, a testament to the cryptocurrency's resilience in the face of internal challenges.

Understanding the New York Agreement and SegWit2x

The New York Agreement (NYA), also known as SegWit2x, emerged from a private meeting in May 2017, spearheaded by Barry Silbert of Digital Currency Group.The agreement aimed to activate Segregated Witness (SegWit), a crucial scaling upgrade, and subsequently increase the block size to 2MB.This initiative quickly garnered support from a significant portion of Bitcoin miners and businesses globally, seemingly offering a unified path forward. The New York Agreement (NYA) lost another signatory on Tuesday, as Latin American bitcoin exchange SurBTC withdrew support for SegWit2x a month before its scheduled release. The Chilean startup made the announcement on Tuesday in an official blog post, joining a litany of companies that have begun to withdraw support for SegWit2x as theHowever, the agreement's lack of broad community consultation and perceived centralization sparked considerable debate within the Bitcoin ecosystem.

The SegWit2x proposal involved a two-stage approach:

Segregated Witness (SegWit) Activation: This upgrade optimized transaction data storage, effectively increasing the network's capacity without directly increasing the block size.
2MB Block Size Increase: The second part of the agreement proposed a hard fork to double the block size, further enhancing transaction processing speed.

The core idea was to offer a compromise that addressed both immediate scaling needs and longer-term capacity concerns. Latest. The Growth of Crypto Being Used in Online CasinosHowever, the implementation and governance surrounding SegWit2x proved to be deeply divisive.

The Rise of Dissent and Cancellations

Despite initial support, the SegWit2x project faced growing opposition from Bitcoin developers and community members who believed it undermined Bitcoin's decentralized nature and consensus-driven decision-making process. To learn more about why the agreement failed, read our article on Bitcoin Independence Day. You can also learn more about how Segwit was locked in and activated as a result of Bitcoin Independence Day. Other Names for the Agreement. The New York Agreement was also known as Segwit2X or NYA, although its official name was theConcerns arose about the lack of transparency in the NYA's formation and the potential for a centralized group of companies to control Bitcoin's future.One criticism was that it bypassed the Bitcoin Improvement Proposal (BIP) process, where protocol changes are typically peer-reviewed by developers across the ecosystem.Instead, SegWit2x was forged in an invite-only meeting among a select group of company executives.

As the planned hard fork date approached, several prominent signatories began to withdraw their support. SegWit2x, (abbreviated B2X or S2X, and originally called SegWit2Mb), was a failed contentious hardfork attempt outlined in the New York Agreement that intended to double the block size limit. The hardfork has been denounced as an attempt made by CEOs and owners of large Bitcoin businesses to introduce changes to the currency's protocol andOne notable example is F2pool, a major Bitcoin mining pool, which reversed its commitment to SegWit2x. Typically, changes to the Bitcoin protocol go through the Bitcoin Improvement Proposal (BIP) process where it is peer reviewed by developers across the ecosystem, whereas SegWit2x went through the New York Agreement, which was forged at an invite-only meeting among about a dozen company executives. The Seoul Meetup states:Similarly, Latin American bitcoin exchange SurBTC also announced its withdrawal, citing concerns about the project's divisiveness and potential negative impact on the Bitcoin network.Bitwala, a wallet provider, was another early company to rescind their support. A little over three months ago, SegWit, a Bitcoin upgrade, was activated after a long and hefty debate. The result of this debate also created an altcoin called Bitcoin Cash, which was created as the opposition to the Segwit solution. Now, we re on the verge of another split in the Bitcoin network called Segwit2x.These cancellations highlighted the growing unease and lack of consensus surrounding SegWit2x.

Why did companies withdraw their support?

Several factors contributed to the decision of companies to withdraw their support for SegWit2x:

Lack of Community Consensus: The project failed to achieve broad support from the Bitcoin community, leading to concerns about a potential chain split.
Centralization Concerns: Critics argued that the NYA process was too centralized and did not adequately involve the wider Bitcoin ecosystem.
Technical Concerns: Some developers raised technical issues with the proposed 2MB block size increase, arguing that it could lead to increased centralization of mining power.
Fear of a Chain Split: The potential for a permanent split in the Bitcoin blockchain, creating two competing currencies, was a significant deterrent for many businesses.

The Eventual Cancellation of SegWit2x

In November 2017, just days before the planned hard fork, the SegWit2x project was officially cancelled.The announcement cited a lack of sufficient consensus within the community as the primary reason for the cancellation. Read the most recent news on Bitwala to stay informed about the latest events, blockchain and payments with our Bitwale news section.The decision was met with relief by many in the Bitcoin community, who feared the potential disruption and uncertainty that a chain split would have caused.

The official statement from the SegWit2x organizers acknowledged that while they believed in the need for a larger block size, they also recognized that it was essential to have a unified vision for Bitcoin's future. SegWit2x is a bit more descriptive than New York Agreement, but both terms refer to the same thing. In May 2025, a meeting of major Bitcoin miners, exchanges, and wallet services met at theThey concluded that continuing with the hard fork without broad consensus would be detrimental to the network's stability and value.

The Aftermath and Lessons Learned

The cancellation of SegWit2x had a significant impact on the Bitcoin ecosystem.The price of Bitcoin surged to record highs following the announcement, reflecting the market's relief and optimism about the future of the cryptocurrency.The failed attempt also highlighted the importance of community consensus and decentralized governance in Bitcoin's development.

Several key lessons emerged from the SegWit2x saga:

Consensus is Crucial: Any significant changes to the Bitcoin protocol require broad consensus from the community.
Decentralization Matters: Attempts to centralize decision-making processes are likely to face strong resistance from the Bitcoin community.
Transparency is Key: Open and transparent communication is essential for building trust and fostering collaboration within the ecosystem.
Hard Forks are Risky: Hard forks can lead to chain splits and create significant uncertainty for users and businesses.

The Role of Bitcoin Cash

Interestingly, prior to the Segwit2x proposal, the debate around Bitcoin scaling had already resulted in the creation of Bitcoin Cash (BCH). The New York Agreement (NYA) lost another signatory on Tuesday, as Latin American bitcoin exchange SurBTC withdrew support for SegWit2x a month before its scheduled release.This hard fork, occurring in August 2017, was driven by proponents of larger block sizes who believed that SegWit did not adequately address Bitcoin's scaling challenges.Bitcoin Cash aimed to increase transaction throughput by increasing the block size limit, offering an alternative vision for Bitcoin's future.

The existence of Bitcoin Cash added another layer of complexity to the SegWit2x debate. More Turmoil in Bitcoin World Making Us Happy to be Weighted in EthereumSome saw SegWit2x as a compromise between the SegWit approach and the larger block size philosophy of Bitcoin Cash. Bitcoin mining pool F2pool has become the latest signatory to U-turn on its commitment to the controversial SegWit2x hard fork. Following wallet provider Bitwala, F2pool s Wang Chun said heHowever, others viewed it as an unnecessary and potentially harmful attempt to further divide the Bitcoin community.

Alternatives to Hard Forks: Soft Forks and Layer-2 Solutions

The SegWit2x experience underscored the risks and challenges associated with hard forks.As a result, the Bitcoin community has increasingly focused on alternative solutions for scaling and improving the network, such as soft forks and layer-2 technologies.

Soft Forks: A soft fork is a backward-compatible change to the Bitcoin protocol.This means that nodes running the older version of the software will still be able to validate transactions and blocks created by nodes running the newer version.SegWit itself was implemented as a soft fork.

Layer-2 Solutions: Layer-2 solutions are built on top of the Bitcoin blockchain, allowing for faster and cheaper transactions without directly altering the base protocol. Segwit2x, also known as the New York Agreement, is an industry-wide compromise that CEO and founder of Digital Currency Group Barry Silbert spearheaded in May to activate the Segregated Witness (Segwit) scaling upgrade for Bitcoin. The plan instantly gained popularity among a large group of Bitcoin miners and many businesses globally.The Lightning Network is a prominent example of a layer-2 solution that enables instant and low-cost Bitcoin payments.

The Significance of Bitcoin Independence Day

The events surrounding SegWit activation and the opposition to SegWit2x have been referred to as ""Bitcoin Independence Day"" by some members of the community. Bitcoin s price reached a record high on Wednesday as news broke that the Segwit2x hard fork had been canceled. The highly contentious hard fork, which was considered by some to be an upgrade toThis term reflects the idea that the Bitcoin community successfully defended its decentralized nature and resisted attempts to impose changes from a centralized group of companies. Posted by u/BTCBCCBCH - No votes and 29 commentsThe successful activation of SegWit and the cancellation of SegWit2x are seen as victories for Bitcoin's core principles of decentralization and community-driven governance.

The Impact on Barry Silbert and Digital Currency Group

Barry Silbert, the CEO and founder of Digital Currency Group (DCG), played a central role in the New York Agreement.While the cancellation of SegWit2x undoubtedly impacted Silbert's reputation and DCG's influence within the Bitcoin community, the company continued to be a major player in the broader cryptocurrency industry. Read the latest news about Barry Silbert to learn more about this person. The most recent events with Barry Silbert quotes, reveals and moreDCG has invested in numerous blockchain startups and continues to advocate for the adoption of digital currencies.

What is the Current Status of Bitcoin Scaling?

While the SegWit2x debate is now in the past, the issue of Bitcoin scaling remains an ongoing challenge.The Bitcoin community continues to explore and implement various solutions to improve the network's capacity and transaction speed.Layer-2 technologies, such as the Lightning Network, are gaining traction and are expected to play an increasingly important role in scaling Bitcoin in the future.

Additionally, ongoing research and development efforts are focused on optimizing the Bitcoin protocol and exploring new approaches to scaling, such as sharding and sidechains.

Frequently Asked Questions About SegWit2x

What exactly was SegWit2x designed to do?

SegWit2x was designed as a two-part upgrade to the Bitcoin network.The first part, Segregated Witness (SegWit), optimized how transaction data was stored, increasing network capacity. The idea of companies notifying the community of their intent to use a hard fork to change the Bitcoin protocol isn t new in 2025 eight businesses signed an agreement to support BitcoinThe second part involved a hard fork to double the block size to 2MB, aiming to further improve transaction processing speed.

Why did SegWit2x fail?

SegWit2x failed primarily due to a lack of community consensus. What is SegWit2x? SegWit2x is the next step of Bitcoin update. It s is a second part of the New York Agreement reached . This update means increasing the Bitcoin block up to two MB.Many in the Bitcoin community felt the New York Agreement, which birthed SegWit2x, was too centralized and bypassed the typical Bitcoin Improvement Proposal (BIP) process.Concerns over a potential chain split and the technical implications of a 2MB block size also contributed to its downfall.

What are the alternatives to SegWit2x?

Alternatives to SegWit2x include soft forks, which are backward-compatible changes to the Bitcoin protocol, and layer-2 solutions like the Lightning Network.These approaches aim to scale Bitcoin without requiring a contentious hard fork that could split the blockchain.

How did the cancellation of SegWit2x affect Bitcoin's price?

The cancellation of SegWit2x had a positive impact on Bitcoin's price.The price surged to record highs following the announcement, reflecting the market's relief and optimism about the future of the cryptocurrency.

What lessons can be learned from the SegWit2x experience?

Key lessons from the SegWit2x experience include the importance of community consensus, decentralized governance, transparency, and the risks associated with hard forks.Any significant changes to the Bitcoin protocol require broad agreement from the community to avoid disruption and maintain the network's stability.

Conclusion: The Enduring Legacy of SegWit2x

The story of SegWit2x serves as a compelling case study in the complexities of Bitcoin governance and the importance of community consensus.While the project ultimately failed to achieve its goals, it provided valuable lessons about the challenges of scaling a decentralized network and the importance of open and transparent decision-making.The cancellation of SegWit2x solidified Bitcoin's commitment to decentralization and community-driven development, paving the way for alternative scaling solutions and a more resilient future.Moving forward, the Bitcoin community continues to explore innovative ways to improve the network's capacity and performance, while remaining true to its core principles of decentralization and immutability.The failure of the New York Agreement and Segwit2x underscores that the Bitcoin community values consensus and decentralization above all else.By embracing soft forks and layer-2 solutions, Bitcoin can continue to evolve and adapt to the ever-changing needs of the digital currency landscape.