Cryptocurrencies are one of the most advanced technologies in the world. However, that does not mean that they will always be. In fact, even today, the world’s largest cryptocurrency, Bitcoin, requires urgent updates in order to stay ahead of the crypto world. A task that is not easy to do in a decentralized environment such as Blockchain technology.
The need to update Bitcoin is not new at all. Well, since 2017, the need to introduce reforms within the BTC Blockchain has become clear. To overcome the main problems of cryptocurrency, especially that of scalability.
And, during the great bullish rally of 2017, the massive arrival of new users to the BTC blockchain, generated significant delays in the execution of operations in the cryptocurrency. That took up to 30 minutes to complete.
This waiting time, for a currency that tries to transform itself into an alternative to traditional fiat money, is intolerable. Well, it would prevent Bitcoin users from making purchases of goods and services instantly. Needing long waiting times for payments to be made.
However, and despite this reality, in the almost three years that have passed since the 2017 rally, Bitcoin has not yet experienced an update on its Blockchain. Which accelerates the speed of cryptocurrency operations by increasing its scalability.
This due to the decentralized character of the blockchain. Which prevents a single entity from having the power to make decisions about the future of virtual currency. But that also makes it difficult for the crypto community to make decisions, requiring a consensus that is too broad to implement.
Is it time to update?
This difficulty in implementing improvements in Bitcoin would be at the root of the divisions that occurred in its Blockchain, which led to the birth of currencies like Bitcoin Cash. And that again generates debates, due to the development of a possible update of the Bitcoin blockchain: Taproot / Schnorr.
This update would allow a substantial improvement in the privacy of the cryptocurrency, as well as in its scalability. Avoiding through a new method for the execution of operations, that scenarios such as the one in 2017 reoccur.
However, as happened in the past with other proposals, Taproot / Schnorr creates difficulties for its implementation. Well, although so far there has been no criticism of the protocol by BTC developers. If there is a debate about its implementation.
Specifically, the major concern of the crypto community would be how to integrate users who do not upgrade to the new software proposed by the update, but wish to continue participating in the Bitcoin community. Well, to be effective, Taproot / Schnorr must be massively adopted by the crypto community.
So there is still no consensus among users, about how it should be implemented in the Bitcoin Blockchain. Although there is one more or less large about the need for it to be implemented. So this becomes a key issue to monitor in the months to come.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.