Since its introduction to the world in 2009, Bitcoin and Bitcoin technology have made serious waves in the finance industry. It has been called a game changer by many, as evinced by the myriad “offsprings” that came after it, such as Litecoin and Ethereum. Blockchain technology, on which Bitcoin is based, is finding more and more practical applications in spheres beyond the realm of finance – even after many predicted an inevitable bitcoin crash back in 2017.
While it was a paradigm shifter at the time, it’s important to realize that Bitcoin, popular though it may be, is based on rather old technology by modern standards. As such, there is room for improvement, and innovations to the technology crop up periodically.
The previously mentioned Ethereum, for example, has expanded on blockchain technology by creating smart contracts, which automatically form rules and conditions, enforce those rules, and eventually terminate themselves once all conditions have been met or a rule it established has been broken.
So what improvements in Bitcoin technology can we hope for in 2019?
One of the most major advances to come our way must be in the field of scalability. Scalability refers to the amount of transactions per second Bitcoin’s network can handle. Currently, Bitcoin stands at seven transactions per second.
This is pretty slow, especially when contrasted with Ripple, with its 1,500 transactions per second (it can permit much more too, up to 50,000). While it remains unlikely that the scalability problem will be entirely fixed in 2019, work is being done on improving the Lightning Network, which certainly promises to help alleviate it.
The second improvement in line for 2019 should be tokenization of assets. Tokenization refers to a data security measure through replacing sensitive or private information with a token (symbols like numbers or letters), which can then be used by a business as a “key” for said data.
This, among other things, offers better security against theft and fraud. It’s important to note that tokenization is different from tokenizing, which is the splitting of an asset into tokens. Wrapped Bitcoin (WBTC) is also an example of a similar innovation, a sort of Bitcoin/Ethereum hybrid token.
These upcoming improvements are likely just a fraction of what bitcoin technology has to offer in the forthcoming years, let alone the farther future.
Bitcoin Technology Will Amaze You in 2019
You can look at it like this. In 1973, Motorola created the first cellular phone. Upon its first years, many conjectures were made about what this revolutionary piece of technology will evolve into in the future.
However, practically nobody could have even imagined that cellphones would become the fantastical smart multi-purpose devices we consider quite ordinary today.
The same can be said of Bitcoin and blockchain, even all cryptocurrencies. Our speculations may be negative, cynical, or overwhelmingly positive, even radically so, but the truth is we can’t really be sure about the future of bitcoin technology. Only in time will we be able to see to what shores this ship is headed.
But that doesn’t mean it’s useless to theorize about where these pieces of tech are headed. And to do so, it’s vital that you be in the know about their intricacies. If you feel like finding out more about Bitcoin and blockchain technology, Bitcoinfy has an interesting infographic you should check out below:
There’s a lot to learn from it, like Bitcoin’s and blockchain’s history, how they operate, and various other insightful tidbits and stats, all laid out in a delightful artistic style that makes the information easy to digest and hard to forget.