Announcing Significant Improvement in Bitcoin’s Scaling and PrivacyMarch 31, 2018
Cryptocurrency users will now have peace of mind and confidence with the use of Bitcoin, as new technical changes and development will be implemented. Bitcoin is pleased to announce significant improvements in its scaling and privacy, ensuring users a safer and more convenient transaction all the time.
The most essential comparative properties of a cryptocurrency are confidentiality, security, usability, stability, scalability and privacy. However, scalability is often in conflict with the other properties. In order to scale higher, some blockchains need to sacrifice privacy, just like Bitcoin. The scalability problem of Bitcoin has always been an underlying problem that limits the amount of transactions it can process. This problem is related to the fact that blocks in the Bitcoin blockchain are very limited in frequency and size. There have been many different proposed solutions to address the concern, but this new development is expected to solve the issue entirely.
In addition to scalability concerns, Bitcoin is also the ultimate transparent currency. Every transaction reveals the bitcoin value transferred, the party receiving the payment and the party transferring the payment. Such transaction details are even recorded in a massively-replicated and immutable ledger that can be ready just by anyone.
This brings in a problem for businesses wanting to use Bitcoin but do not want to open everything to their competitors through the blockchain. In addition, it presents problems to any regular users. They need a tool that effectively limits the exposure of purchasing history and private financial transaction on the blockchain.
Fortunately, there are now great solutions to those problems. This year, and even the next coming years, there are a lot of developments and technical changes to be introduced in the market. Such significant changes, especially the ones focusing on scaling will not only affect the user experience, but also the price of cryptocurrency in the long run.
Indeed, many users of cryptocurrency are still a bit concerned about the lack of both the scalability and privacy of Bitcoin. This is quite normal, considering the leading cryptocurrency in world does not even look impressive. The great news is that there are now great solutions to fix the problem.
In addition to scaling, Bitcoin will also see a great focus in terms of privacy. This is where Schnorr signatures come into play. The signatures will improve the privacy and efficiency of multisig transactions. Through masking the original signatures, this will less the size of multi-signatures in general. With this, the two main problems associated with Bitcoin will be solved. Introducing the solution will also reduce the network bandwidth of Bitcoin.
Another exciting change is the Bulletproof implementation, which is a privacy-oriented feature that eliminates the need for trust between different parties. This could also result in lower transaction fees. Therefore, such changes are not just a scaling solution, but also a massive improvement for Bitcoin as a whole. There is a bright future waiting for the industry. People just need to be patient for new series of innovations to boost their experience.