Bitcoin Default Digital Reserve Currency

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Bitcoin is king — it is still the best performing asset of our lives. It has silenced its harshest critics and only continued to grow in adoption, usability and relevance. The fact that bitcoin has achieved all this in only 12 years is remarkable. However, there is a very real specter that has been haunting the Bitcoin blockchain since its inception: speed. As adoption continues to bring billions in institutional money, retail, venture capital and now even entire countries into the Bitcoin ecosystem, we are facing the congestion and throughput problems many feared would keep bitcoin from achieving all its lofty revolutionary goals. Despite this, and even despite the rise of altcoins and the scalability challenges facing bitcoin, it will continue to build upon its successes and inevitably become the primary digital reserve currency of the world economy. How? With a bolt of Lightning.

Bitcoin’s Scalability Challenges

If a blockchain network cannot scale to meet the needs of the global, digital economy, there is no hope of achieving mainstream adoption. There are many measures for scalability, but the most common is throughput (transactions per second or TPS). For context, Visa’s payments network can process an estimated 24,000 transactions per second, though in reality only needs to complete about 1,700/sec. By comparison, Bitcoin processes between four and five transactions per second—in other words, Bitcoin is painfully slow. Bitcoin’s latency is in large part what motivated the rise of altcoins: Cardano, Nano and Solana, to name a few, all advertise high transaction throughput in comparison to bitcoin.



Source link Bitcoin Magazine

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