Since the creation of bitcoin Satoshi Nakamoto have been several modifications of the Protocol on which it is based.
Since the creation of bitcoin Satoshi Nakamoto have been several modifications of the Protocol on which it is based. As a result, the original Protocol by means of pre-forked instances have been completely new projects. Among them, Litecoin, Dash, Bitcoin Cash, Bitcoin Gold, the creators of each of which claimed certain improvements of bitcoin.
Currently, the bitcoin blockchain has a number of weaknesses. This causes a lot of criticism in the direction of the main and most popular of the existing blockchain. It is not surprising that since the beginning of Satoshi himself said that he is open to discussions of his ideas. Inherent bitcoin weaknesses has led to the fact that the opposing team started complaining about the possible dismissal of bitcoin as a cryptocurrency No. 1.
Currently, the speed of confirming transactions in the blockchain of bitcoin is radically different from the one that was two years ago. Transaction latency was a typical situation in the bitcoin blockchain, that is increasingly frustrating for users. This is the main reason the cryptocurrency is not suitable for the purposes of the transaction, together with the high volatility of the exchange rate. Apparently, for widespread adoption, the transaction should not differ from the time of receipt. This is not so at present, when the confirmation of transactions in bitcoin takes hours and sometimes even days. This deficiency has caused some controversy, and, consequently, on the basis of the effectiveness of the network was an innovative version, as SegWit and even the hard fork, after which there is Bitcoin Cash.
The cost of the transaction
Transaction fees is causing confusion in the bitcoin ecosystem. Fees are sometimes high up the outrageousness. Technically, the transaction fees in bitcoins is determined based on the number of transactions and the size of each transaction in kilobytes. These fees are not directed to the Central authority, but rather to miners as a reward for confirming transactions. Thus, transactions with higher costs require more work, a high volatility market, which is observed currently, miners are focused on the transaction at a lower cost. Such transactions involve less work, consequently, for transactions with high cost (usually more popular), you need to pay a higher Commission to attract more miners.
Such commissions often deny the assumption that peer-to-peer transactions are more deshevym method of money transfer.
The bitcoin blockchain is a decentralized platform, at least in structure. However, based on the latest configuration of the ecosystem, it is obvious that the majority of mining capacity is concentrated in the hands of a few persons In the community, managed through consensus, it means that some miners in control of most of the hash power will always dictate terms. Many argue that because of this, the community transformed into a centralized system that functions like that.
Once the hard fork Bitcoin Atom
The blockchain of bitcoin will see a new hard fork. It plans to conduct anonymous command, which declares adherence to the original principles of Satoshi Nakamoto in the creation of Bitcoin Atom (BCA).
According to the team leader, who wished to remain anonymous, will be given the solution to the dual problems of speed and cost. The Protocol will work on on-chain and off-chain (i.e., lightening and atomic swaps). He notes that, although centralization is not a significant weakness of bitcoin, the risks created by the exchanges through which they are usually committed in cryptocurrency transactions, create concern for the industry.
“Centralization is not so noticeable, but the main problem of the transfer of value in cryptocurrency world is exchanges. Centralized exchanges can be subjected to hacker attack or disappear, they can also close the regulators. A decentralized exchange, as Etherdelta, don’t trade bitcoin, but only tokens ERC-20. And even though they may suffer from hacking attacks,” he said.
According to the team Bitcoin Atom, they included functionality exchanges at the Protocol level in the node of bitcoin, so no one, except the system will not be able to control the exchange.
This Protocol will combine Proof of Work and Proof of Stake, based on the old codebase of bitcoin, in contrast to similar versions that have appeared before.
Fork scheduled to be held between 24 and 25 January 2018 at block 505 888.