Saturday, June 1, 2024

Bitcoin is dealing with a scalability crisis as transaction fees increase

There is talk about the new ways to grow Bitcoin, like Ordinals, Inscriptions, BRC-20 coins, and Runes, even though transaction fees are going up. Around 2024, it will cost $9.50 to send Bitcoin. In other words, problems with growth need to be looked at more closely. Binance did a study that says Ethereum has $45 billion in Layer-2 options and Bitcoin only has $2 billion. This is proof of how important it is to quickly fix issues with growing. When you think about how scalable Bitcoin is, some of the most important things to think about are trustless links, agreement with the base layer, possible forks, and incentive structures. Base technologies like Taproot and BitVM are making it possible for Bitcoin's system to do more things. Things like the Lightning Network and RGB are projects that want to make deals better and add smart contract features. New technologies, such as sidechains, EVM Layer 1s, and zero-knowledge rollups, are making Bitcoin's Layer 2 world safer and more scalable. Layer 2 options are becoming more and more important as transaction fees and network delays go up. As work continues, scaling problems should be solved soon, giving us a more positive view on Bitcoin's scale problems.


Summary News

No matter how much the fees are, Bitcoin will still grow with the help of new tools. Runes, Ordinals, Inscriptions, and BRC-20 coins are a few of these. Not all of Ethereum's $45 billion Layer-2 options are used. Only $2 billion are. You need to be able to grow up with trustless links, base layer deals, forks, and payment systems. Base tools like BitVM and Taproot can help Bitcoin grow. With no-knowledge rollups and sidechains, it's better and easier to use now.


Source: Soaring Bitcoin fees reignite scaling debate - Binance Research

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