Bitcoin

Bitcoin to See Significant Improvements in Privacy and Scaling, Impact on Price Trend

JP Buntinx | March 25, 2018 | 12:49 pm
Bitcoin

Bitcoin to See Significant Improvements in Privacy and Scaling, Impact on Price Trend

JP Buntinx | March 25, 2018 | 12:49 pm

The future of Bitcoin is always interesting to keep an eye on. This year, as well as the next few years, will introduce a lot of technical changes. All of these developments – especially those pertaining to scaling – will positively impact the cryptocurrency’s price in the long run.

Scaling and Improvement Solutions are Coming

Most cryptocurrency users are still concerned about Bitcoin’s lack of scaling. This is only normal, as the world’s leading cryptocurrency doesn’t look that impressive. Its transaction throughput is abysmal, and mounting network fees occur quite regularly. These problems will be more efficiently dealt with, given the activation of transaction malleability fix and scaling solutionSegWit. That is also the first step in the process, though.

Other than scaling, bitcoin will see a strong focus on privacy. Schnorr signatures are a very intriguing development in this regard. These signatures improve efficiency and improve privacy of multisig transactions. By masking the original signatures, it will reduce the size of multisig transactions in general. That in itself solves two big problems associated with the most dominant cryptocurrency in the market in one go. Introducing this solution will also reduce overall Bitcoin network bandwidth.

On top of that, bitcoin will see the Bulletproofs implementation. It is another privacy-oriented feature which removes the need for trust between multiple parties. It is possible this will lead to lower transaction fees. Not necessarily a scaling solution, yet still a massive development for Bitcoin as a whole. All of these tools will come to fruition at some point. Most of them have no deadlines right now, but that isn’t a big problem.

Sidechains for Everyone

Another strong point of focus comes in the form of sidechains. These “additional” blockchains let other projects connect to Bitcoin. This method opens up a lot of new opportunities for all currencies involved. Different chains can have different rules and features, while still being anchored to Bitcoin. It is also a sort of scaling solution, depending on how you want to look at it

Different sidechains are worth keeping an eye on as of right now. Rootstock, Liquid Network, and Drive chain are just some of the options worth keeping an eye on. All of these projects bring so much potential to Bitcoin, the price simply has to go up. Bolstering this ecosystem as a whole is a long process, but a lot of the stars are aligning.

For anyone looking at the big picture, it is evident things look promising for Bitcoin. Solving scaling issues, additional privacy, and more features are all bullish signals. While speculators may not care about any of this, the rest of the world will. Bitcoin has a bright future ahead, that much no one can deny.

Tags: , , , , , , ,

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

Get the app

Featuring live charts, price analysis, breaking news, currency converter and more. The only bitcoin app you need!

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.