Could the Bitcoin block chain handle mass adoption?
Can the Bitcoin Block Chain (BTC) handle mass adoption as a value pool, without the need for layer two scaling solutions? Konstantin Richter, founder and CEO of blockchain infrastructure company Blockdaemon, believes so.
A new timeline shows the price of Bitcoin alongside the historical events of the last decade
„Bitcoin is the best crypto currency to store value,“ Richter told Cointelegraph, adding:
„In terms of what the Bitcoin block chain can currently handle from a latency and performance standpoint, Bitcoin is very strong. If we start talking about using Bitcoin for payments, that’s where the need for layer-2 solutions comes in, but for people who plan to buy and save, there’s no immediate need.
Bitcoin’s pseudonymous creator, Satoshi Nakamoto, created the digital asset as „a peer-to-peer electronic money system,“ as noted in the 2008 asset white paper. However, as the price and adoption increased, Bitcoin’s role apparently shifted from a transactional asset, similar to cash, to a gold like reserve value, due to the relatively slow transaction times and high fees.
IBM Blockchain used to help track carbon impact of fashion products
Near the end of Bitcoin’s upward cycle in 2017 and early 2018, Bitcoin’s transaction fees increased significantly. Since then, teams have worked on various layer-two solutions to be able to move BTC around, such as the Lightning Network, although as a store of value, the Bitcoin block chain can now run smoothly, according to Richter’s comments.
„Infrastructure and liquidity provisioning is also converging, allowing us to test new business models,“ he said, adding:
„Exchanges, custodians and financial institutions are looking for bridges to all major protocols, which is possible with horizontal scale block chains in a common stack, which is where we actively collaborate with the protocols to support these integrations and stack growth.
An Ethereum layer two network will offer batch payments with Tether
Bitcoin still has the largest market capitalization of any cryptoactive, even after a decade that marked the beginning of thousands of new cryptomonkets.