CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$27,106.00
  • ethereum
    ETH$1,674.36
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Has Bitcoin Scaled? Is Bitcoin ready for the next bubble?

    Has Bitcoin Scaled? Is Bitcoin ready for the next bubble?

    Author: Toju Ometoruwa

    Last Updated Aug 29, 2018 @ 09:00

    Although the 2018 crypto bear market seems to be fraught with bad news, there have been some less obvious benefits. As it turns out, the decline in Bitcoin prices has been increasingly beneficial to the development and functionality of the Bitcoin network.

    During the peak of the crypto bubble (around November and December 2017) the Bitcoin network was so clogged up with transactions, it could take several hours to get your orders confirmed (if they happened at all). Since prices began dropping around February, these network confirmation problems have largely vanished, as displayed on the following chart:

    btc_chart_1-min

    Lower transactions in 2018 have helped to decongest the network and allowed transactions to be confirmed faster. In another example, we can see the TPS (Transactions Per Second) rate over the same period:

    btc_chart_2

    What have been changed since SegWit and Lightning

    Over the past few months, the Bitcoin network has been developing into a more robust form thanks to new solutions like SegWit and the Lightning Network.

    SegWit (short for Segregated Witness) is an upgraded protocol that aims to solve the scalability problem by changing the way information is stored on the blockchain. It was first introduced to Bitcoin in August 2017 but has slowly increased in its utility during the bear market.

    The maximum block size on the Bitcoin blockchain is 1 MB, which restricts Bitcoin to only being able to process 7 transactions per second. SegWit was initially developed to solve a bug in Bitcoin’s code that allowed anyone to make small modifications to the transaction ID. SegWit fixed the problem by removing signature information from the main transaction block and storing it outside.

    Removing signatures also helped reduce the weight of the block, allowing more transaction data to be input, which helped increase the speed of confirmed transactions.

    This chart shows the adoption rate of the Segwit solution. As you can see, shortly after the number of transactions plunged, adoption of Segwit spiked. And, as the price of Bitcoin has relaxed, more and more providers have begun to use Segwit:

    btc_chart_3

    The Lightning Network is another Bitcoin ‘layer 2’ scaling solution. Using the Lightning Network smaller, less significant transactions are stored ‘off chain’, and are essentially bundled up and validated independently by small communities before being sent back to the main blockchain, where they can be processed as one single transaction. The Lightning Network is currently still in development and may take more time before gaining a higher adoption rate.

    What’s going to happen on the next run to $20K?

    When the next bull run occurs is anyone’s guess, but as these solutions continue to strengthen the Bitcoin network, we can be sure that another run up to $20K per BTC will provide a much smoother transactional process for everyone.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Toju Ometoruwa
    More posts by this author

    Toju Ometoruwa is a Northeastern University alumni who is the co-founder of Pazima, a start-up that provides secure lending options for low-income workers. His passion is to empower communities across the African diaspora through the blockchain.

  • bitcoin
    BTC$27,106.00
  • ethereum
    ETH$1,674.36
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    We’re Still the Most Compliant Crypto Exchange Today: Binance’s New CMO Sheds Light On Its Urgent Challenges (Exclusive)

    We’re Still the Most Compliant Crypto Exchange Today: Binance’s New CMO Sheds Light On Its Urgent Challenges (Exclusive)

    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    DeFi Without Native Rights Is Dead

    DeFi Without Native Rights Is Dead

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!