Currency Economy

Searching deep: The quest for Bitcoin scalability through layer two protocols

Cryptocurrency (Mar 08, 2021 11:20AM ET) Searching deep: The quest for Bitcoin scalability through layer two protocols

Searching deep: The quest for Bitcoin scalability through layer two protocols

As the largest cryptocurrency by market capitalization, Bitcoin’s (BTC) effectiveness as a medium of exchange is still a matter for debate. Unlike fiat money that is inherently infinite in supply and must be managed by a central bank, Bitcoin is akin to gold in that it is commodity money with a finite supply of 21 million.

However, the supply cap is not the major stumbling block for BTC as a medium of exchange, but rather, the transaction throughput. While Satoshi Nakamoto envisioned Bitcoin as a peer-to-peer electronic cash system capable of facilitating online payments without a central counterparty, seven transactions per second on average is hardly the standard for scalability.

Continue Reading on Coin TelegraphSearching deep: The quest for Bitcoin scalability through layer two protocols

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