Bitcoin can scale on chain just fine as a store of value, Blockdaemon CEO suggests


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Can Bitcoin’s (BTC) blockchain deal with full mainstream adoption as a retailer of worth, without having layer-two scaling options? Konstantin Richter, founder and CEO of blockchain infrastructure firm Blockdaemon, appears to suppose so.

“Bitcoin is the most effective cryptocurrency fitted to retailer of worth,” Richter instructed Cointelegraph, including:

“When it comes to what the Bitcoin blockchain can at the moment deal with from a latency and throughput viewpoint, Bitcoin may be very robust. If we begin speaking about utilizing Bitcoin for funds, that’s the place the necessity for layer-2 scaling comes into play, however for individuals who plan to purchase and maintain, there’s no want proper now.”

Bitcoin’s pseudonymous creator, Satoshi Nakamoto, produced the digital asset as “A Peer-to-Peer Digital Money System,” as noted within the asset’s 2008 white paper. As value and adoption rose, nonetheless, Bitcoin’s function seemingly modified from a transactional, cash-like asset, to a gold-like store of value, as a result of comparatively sluggish transaction occasions and excessive charges.

Close to the tip of the final Bitcoin bull run in 2017 and early 2018, Bitcoin’s transaction charges rose considerably. Since then, groups have labored on varied layer-two options for shifting BTC round, such as the Lightning Network — though as a retailer of worth, Bitcoin’s blockchain may fit high-quality as-is for now, primarily based on Richter’s feedback.

“Infrastructure and liquidity provisioning are additionally converging, permitting for brand spanking new enterprise fashions to be examined,” he included, including:

“Exchanges, custodians and monetary establishments are searching for bridges to all main protocols which is feasible with horizontally scaling blockchains throughout a typical stack which is the place we’re actively collaborating with protocols to assist these integrations and the expansion of the stack.”

Bitcoin nonetheless has the largest market cap of any crypto asset, even after a decade that ushered in hundreds of recent cryptocurrencies.