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.

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  • Curtis Nelson

    Bitcoin does it again!

  • 4040s

    Awesome!!!

  • mike

    this is the fire that lights the fuse …….

  • Matt Watson

    Still doesn’t solve the terrible waste that proof of work (mining) creates. Newer coins like Nano are light years ahead in scalability with no high overhead of proof of work.

    • Marten Chuzzelwit

      Comparing it to the cost of maintaining “traditional” banking, including brick and mortar structures as well as the stupendous cost to the environment caused by inflationary debt instruments that require a rapidly expanding economic model, we can thank our lucky stars for Bitcoin.
      Proof of work is a high cost to pay in terms of energy consumption but nowhere near as much as building and maintaining the banking industry.
      The price appreciation alone proves people are willingly paying whatever it takes to disintermediate the corrupt third party intermediaries.

      • John Kuhn

        Proof of work is only expensive, because the rewards are high. If the rewards were lower, or rather, when the rewards become lower as bitcoin reaches its 21m limit, many miners will drop off the network, as its no longer generating such returns. that will reduce the consumption of electricity.

  • Mtnchippewa

    I wish there could be a way to retroactively strip the non-essential “notes” that people add as tags on transactions, to eliminate the newfound CP problem. That alone could be used by governments as an ad-hoc excuse to ban Bitcoin. Thanks, to whichever horrible people thought it was a good idea to add CP links to bitcoin, contaminating the ledger for everyone.

    • John Kuhn

      How can anyone “Ban” bitcoin. Its a peer to peer network. Ban away, but the rules of bitcoin are all that matter. In the end, anyone can choose to use it or not, regardless of a particular governments desire to censor, or ban.

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