For a number of years now, bitcoin has been at the forefront as one of the most popular cyber currencies available. But this is slowly but steadily changing as more ‘forks’ (more about this later in the article) branch from the main blockchain in a deliberate and conscious effort to solve one of the biggest hindrances to bitcoin’s dreams of becoming a mainstream currency. Several users of the cryptocurrency have always complained of the duration it takes for a single bitcoin transaction to go through.
It has been reported that on average it takes up to 10 minutes to process a single bitcoin transaction though some users have reported having waited for as long as 42 minutes, especially on those busy days and the bad news, is that as long as the underlying infrastructure of bitcoin’s transaction processing technology remains the same it can only get worse especially as more people jump on to the platform. To put this in perspective bitcoin currently processes 6.5 transactions while another transaction processing service like Visa has the capability to process up to 24,000 transactions each and every second.
This is due to bitcoin’s decentralized approach meaning it only exists in computers all around the world making it private, secure and free government manipulation. This decentralized approach also means that during mining anyone trying to send or receive bitcoins must wait for the process to finish for their transactions to be processed. There is potentially only two ways to solve this problem. The first one is to decrease the amount of data being processed in each and every bitcoin mining block. The second one is to increase the size of each and every bitcoin mining such that more information can be processed at a go.
In an effort to solve this problem, a number of projects have been started and in turn creating free money. One such is the SegWit2x which uses the segregated witness technology to reduce the amount of data in each bitcoin mining block by moving some data from the mining block to another extended block that is not always verified making bitcoin sort of less secure.
About Ted Bauman
Ted Bauman is the editor of the Bauman Letter, Plan B Club, and Alpha Stock Alert Newsletters. He also the Editorial Director at Banyan Hill Publishing. He is an expert of low-risk investment, asset protection, and international migration.