According to a research that was published by the Bank for International Settlement (BIS) which we are covering in our bitcoin news today, the problems of the major cryptocurrency can be solved only by leaving the proof-of-work system.
The arguments suggest that after bitcoin’s block rewards drop to zero because of the limited number of BTC, the network will become painfully slow and it will make the currency unusable:
“Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality.”
However, in the study there is little praise for the Lightning Network as well, claiming that it could help but the real remedy for improving the network would be by saying goodbye to the proof-of-work method. Leaving the protocol would likely require a sort of coordination and possible institutionalization.
The conclusion is basically that ‘’in the digital age too, good money is likely to remain a social construct rather than a purely technological one.’’
The Bank for Institutional Settlement is basically a group of 60 central banks which account almost 95 percent of the global GDP.
BIS issued another report a few weeks ago where it was explained that nearly seventy percent of the central banks in the world are researching the option for a central bank digital currency and how to issue it. The major financial institution found a solid correlation last September between the crypto prices and the news about regulation that swamped the news platforms worldwide.
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