Has the Bitcoin bubble finally burst?
With a new Bitcoin price dip below $7,000, some are speculating that April 2018, might signal the end of Bitcoin’s (up until now) long-term growth trend. What is more, some people are even starting to question Bitcoin’s continued technological relevance on the cryptocurrency market.
Bitcoin Vs IOTA & The Emerging Internet of Things
The so-called ‘Internet of Things’ is quickly becoming a hot talking point among blockchain technology commentators.
With 5G on the horizon, there is a pressing need for cryptocurrency to start scaling and settling transactions faster than at any point previously. In fact, this is precisely why coins like the Internet of Things based cryptocurrency IOTA, benefit from such strong investor support.
How Schnorr & Smart Contracts are set to Supercharge Bitcoin
Up until recently, Bitcoin has excused itself from the race to be the fastest digital currency in town. All this, however, is about to change thanks to developers realizing that in order to stay relevant, Bitcoin does need to compete more.
What is Schnorr and How can it Help Bitcoin?
Schnorr is transaction signing protocol which if implemented by Bitcoin, could reduce traffic congestion on the Bitcoin blockchain by as much as 25%.
Named after cryptographer Claus-Peter Schnorr, Schnorr transaction signatures are shorter than the signatures which Bitcoin currently uses to verify transactions. Much more importantly, multiple Schnorr signatures can be grouped and processed simultaneously.
This means that if Bitcoin implemented Schnorr, the cryptocurrency could benefit from
25%+ network speed increases, coupled with the ability to completely eliminate spam on its network.
Bitcoin Can be Used to Create Smart Contracts - (Just No One Knows)
In a future in which Bitcoin implements Schnorr and integrates fully with the Litecoin Lightning Network, Bitcoin could easily become one of the fastest cryptocurrencies on the market. Did you know, however, that Bitcoin can also already be used to create Ethereum-like smart contracts?
Smart contracts are not native to the Bitcoin codebase like they are with Ethereum. That said, recent updates to the Bitcoin codebase do make Bitcoin capable of executing smart contracts. What is more, eCommerce platform Particl.io, is already using this little-known Bitcoin feature to trustlessly manage Particl.io escrow transactions.
Why Speed Schnorr & Smart Contracts Matter
Implementation of Schnorr signatures, smart contracts, and increased network speed is going to be hugely important for Bitcoin in future.
For the most part, Bitcoin today is appreciated as nothing more than a digital store of wealth. Few people actually transact with the cryptocurrency and Bitcoin is one of just a few coins with arguably no real utility value.
Given the above, when faster transaction processing does become a reality alongside the wider use of Bitcoin smart contracts, Bitcoin will likely enter a new digital Renaissance.
Is Bitcoin Still Relevant in 2018?
Because of the untapped speed and unrecognized utility potential of Bitcoin, it is safe to say that the digital currency is far from irrelevant in 2018. In fact, robust ongoing development of Bitcoin should be seen as one of the cryptocurrencies key strengths. The only question is, will you invest now while prices are low? Or will you be holding out to see just how low Bitcoin can really go before it rebounds?