What will Bitcoin scalability cause (Bitcoin impact expands again)
What will Bitcoin scalability cause Editor\’s Comment: This article is from Bloc
What will Bitcoin scalability cause Editor’s Comment: This article is from BlockBeats (ID: blockbeats), authorized to be republished by Odaily Planet Daily.
What will Bitcoin scalability cause? In December 2017, with the emergence of blockchain technology and the development of the cryptocurrency industry, more and more people began to pay attention to the scalability issue of Bitcoin. However, due to technical reasons and a series of factors such as the decrease in people’s general understanding of Bitcoin, it has affected the overall development of Bitcoin, resulting in many issues regarding scalability:
1. Scalability means slower transaction speeds, making it difficult for users to transfer funds quickly; 2. To improve network efficiency or reduce costs, faster confirmation times are needed to achieve high throughput; 3. Demand has increased because miners can obtain resources from external sources and earn more income to run nodes. However, this has not provided a practical solution to the actual problem, but instead has led more people to choose to use their own wallets to participate, ultimately causing issues such as congestion and low performance in the Bitcoin network. So how can we reduce this situation?
1. Split transactions into different fragments through sharding. This creates a new chain, and each transfer is initiated by the same address. This method is called “sharding”, which is a way to allow communication between multiple accounts so that other users can also access the private keys of the same transaction to ensure transaction security and privacy. The sharding mechanism allows everyone to perform message transmission operations between different accounts. If someone wants to take on the role of a validator, they can send a set of data and connect it with another person’s signature. The purpose of sharding is to create a secure system for all transactions and eliminate intermediaries to complete the entire process, thereby avoiding fees paid to third-party entities. Although these protocols themselves do not have limitations, they are indeed attractive to projects that want to join such ecosystems because they can leverage certain weaknesses in existing infrastructure to improve speed and reliability. In addition, due to the scalability, easy maintenance, and unique features of Bitcoin, we believe that in the next few years, we may see some new business models enter the Bitcoin field.
2. When you want to deploy a smart contract to create a smart agreement, you can set your password without changing the code. For example, if you want to create a smart contract, you must first generate a token. Then, this token can be directly called by a smart contract without the need for any software execution, such as depositing 1 BTC into a specified wallet.
3. “Reboot” usually means preparing a backup disk before starting Bitcoin. Once you complete this process, new storage media will be automatically added. Now, the application has achieved full compatibility, which can not only meet the daily transaction needs of current users but also support Bitcoin as a long-term value anchor for digital gold. 4. By introducing sidechains.
Bitcoin’s impact expands again
With the rise of Bitcoin and a significant decline in the prices of other cryptocurrencies, Bitcoin’s impact is expanding again. It is reported that since reaching its historical high point in December last year, this number has surged by about 50%. According to Glassnode data, despite recent pullbacks, BTC’s rebound has exceeded 30%. In the past two weeks, this growth is mainly attributed to “whales” on Coinbase.
This indicates that as more and more people put their funds into cryptocurrencies, this trend seems to be accelerating. (Finbold)
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