Could Bitcoin grow beyond its role as a payment system with scaling solutions such as ZK Rollups?
Could Bitcoin grow beyond its role as a payment system with scaling solutions such as ZK Rollups?
Bitcoin: More than a cryptocurrency?
Bitcoin, the largest cryptocurrency in the world, has long been known for its importance in the financial sector. However, some enthusiasts believe that Bitcoin has the potential to be more than just a means of carrying out transactions.
During a Twitter event on July 6th, Vitalik Buterin, co-founder of Ethereum, underlined the importance of scaling solutions for Bitcoin and said that the introduction of technologies such as ZK Rollups could expand Bitcoin's skills beyond that of a pure payment system.
strange Bitcoin policy
but the dominance of Bitcoin in the area of cryptocurrencies recognized, but pointed out one of the greatest challenges. He emphasized that Bitcoin has "a really strange policy" with which he could be difficult to make friends with. This observation throws a light on the social dynamics and the decision-making processes within the Bitcoin ecosystem.
Buterin, Eric Wall and Udi Wertheimer discussed the scaling of Bitcoin. They emphasized the need for a faster transaction throughput and the research of alternative Layer 2 scaling approaches. By implementing such solutions, Bitcoin could increase the speed with which users can send and receive digital assets.
but stated that scaling options such as plasma or ZK Rollups could enable Bitcoin to go beyond its role as a payment system. These scaling solutions have already been tested in the Ethereum blockchain network.
Ordinals as a solution?
Eric Wall and Udi Wertheimer joined the discussion. Wall expressed concerns about the ecosystem and emphasized how important it was that Bitcoin study these attempts to scale in order to avoid that less secure roll-up implementations are assumed. Buterin recognized the need to take such concerns into account.
An important topic that Wall appealed was the security model of Bitcoin and the 21 million hard cap. Buterin recognized the complexity of this question and proposed Ordinals as a possible solution. By establishing an appropriate fee market, Ordinal could tackle the challenges of the decreasing blocks subsidies and at the same time ensure that the security requirements are met.
but the development of ordinals within the Bitcoin ecosystem and considered it significant "for the Builder culture". He noted that he "definitely sees a sign of hope now that we have ordinals" and described it as a real pushback on "laser -eyed maximum".
similarities between Ethereum and Bitcoin
but also searched for similarities between the two ecosystems and called ten common aspects. He emphasized the statement of unchangeable in both chains and recognized the respective challenges with the Layer 1 Privatate Palatium. Buterin also admitted that Ethereum and Bitcoin have shown the complexity of decentralized consensus models.
FAZIT
It is clear that Bitcoin can be more than just a cryptocurrency. With the introduction of scaling solutions such as ZK Rollups and the development of ordinals, new opportunities and potential for Bitcoin are open. The discussion about the future of Bitcoin will continue to be exciting, since the community focuses on the development of solutions to make Bitcoin an even more versatile and powerful network.