This content originally appeared on HackerNoon and was authored by Hekuran Gashi
Image: Bitcoin is moving away from its legacy concept, and Bitcoin maximalists are sceptical
Can we keep Bitcoin’s core values intact while adapting to new tech demands? Humankind’s history tells us that it is challenging to make changes that everyone can agree on \n \n
The first cryptocurrency, Bitcoin (BTC), has come a long way since its launch in 2009. Originally designed to send money directly between peers, it is now seen as 'digital gold'—a safe option compared to traditional financial tools in a shaky geopolitical world.
\ As Bitcoin’s network grows, new solutions like layer 2s, Runes, and Ordinals, among others, are popping up. These additions aim to empower the network to handle more transactions and become more inclusive towards its diverse users’ needs.
\ However, not everyone in the Bitcoin community is happy about these changes. According to CryptoLists’ review of 71 networks, many users see Bitcoin as only the third in terms of usability, falling behind Ethereum and the Binance Smart Chain. Some long-time supporters think these new features detract from Bitcoin's original purpose.
The Promise of Layer 2 Solutions
Layer 2 solutions have been a big step forward for Bitcoin–and a big promise. They work on top of the existing Bitcoin network to speed up transactions and make them more efficient without changing the system's basic rules–a method set to reduce traffic and speed up the whole process.
\ The main benefit of layer 2 solutions is that they allow the Bitcoin network to handle more transactions every second than it could before. This is critical to extending Bitcoin's adoption as a way of doing daily transactions globally.
\ The Lightning Network is an excellent example of a layer 2 solution that tackles Bitcoin’s issues with handling large transactions by letting users make small payments quickly. This works exceptionally well for web3 gaming and content creation, where traditional Bitcoin payments are slow and expensive.
Ordinals: A New Twist for For The Network
Ordinals are a fresh addition to the Bitcoin network. They offer a way to assign unique numbers to individual satoshis—the tiniest part of Bitcoin. This lets users add extra details to satoshis, turning them into non-fungible tokens on the Bitcoin network–‘Bitcoin NFTs’.
\ For example, Ordinals can help in creating secure digital IDs, and making online sign-ups, log-ins, and interactions safer and quicker. They can also turn real-world assets into tokens on the blockchain, making buying and selling more straightforward and efficient.
\ However, introducing ordinals comes with challenges. Adding extra data could make Bitcoin's blocks bigger and slow down transactions, especially when the amount of users is constantly growing.
Runes: A Different Direction to Bitcoin’s Legacy Approach
Bitcoin Runes has revolutionised the network's use. With Runes, users can easily launch their decentralised communities (DAOs), using tokens to represent items in games or initiate new memecoins.
\ Runes are simpler than the BRC-20 standard and can help empower developers to create new and innovative solutions. The Rune standard addresses the BRC-20 token’s issues of slowing down the network, increasing transaction fees, and poor user experiences. This is possible because Runes complement the Bitcoin system to allow anyone to issue and manage blockchain tokens without significantly altering it.
\ Plus, Runes is compatible with Bitcoin’s Lightning network, which provides efficient and inexpensive transactions, thus relieving the main Bitcoin network and helping attract more users.
Where Bitcoin Maximalists Stand
Bitcoin maximalists stick closely to Bitcoin’s legacy concept and are sceptical of new changes like Ordinals or Runes. They argue that Bitcoin’s creator, Satoshi Nakamoto, initially intended the blockchain to be a simple, decentralised way for people to send money to each other without needing a middleman. Over the years, Bitcoin has even become a way to protect money from inflation, earning it the nickname "digital gold."
\ Maximalists believe that adding layers like Ordinals could make Bitcoin too centralised, with too much power in the hands of a few. They also argue that these extras water down Bitcoin's main concept as a safe, straightforward place to keep value.
\ While some think new features are essential for Bitcoin to stay relevant, others want to keep it pure and simple. Can we keep Bitcoin’s core values intact while adapting to new tech demands? Humankind’s history tells us that it is challenging to make changes that everyone can agree on.
Moving Forward
Despite 2022 being one of the coldest crypto winters ever, Bitcoin and the biggest cryptocurrencies have already started making steps forward. New concepts, including Bitcoin ETFs, are born and even accepted by traditional finance and major institutions.
\ Bitcoin’s future is rather ambiguous. It has the potential for massive growth while facing many challenges. Its future success will depend on its ability to address challenges and grab opportunities while remaining true to its original nature.
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This content originally appeared on HackerNoon and was authored by Hekuran Gashi
Hekuran Gashi | Sciencx (2024-07-29T10:38:08+00:00) Bitcoin and Cryptocurrency Trends and Developments to Look Out for in H2 2024. Retrieved from https://www.scien.cx/2024/07/29/bitcoin-and-cryptocurrency-trends-and-developments-to-look-out-for-in-h2-2024/
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