Brace yourselves, another hardfork is among us! Since Satoshi Nakamoto created the world’s first cryptocurrency, Bitcoin, there have been a few modifications to its protocol and new coins have forked from Bitcoin. Bitcoin Cash, Litecoin, Bitcoin Gold, and Dash have all come into the market because of hardforks from Bitcoin. Currently, many have pointed out that there are some deficiencies with Bitcoin’s blockchain, and many are saying that it will not be the number one digital asset for long.
Two years ago, the speed for transactions were much quicker on the Bitcoin blockchain. Now, transactions take longer and sometimes become delayed. For this reason, many investors do not use Bitcoin for transaction purposes. Also, the digital asset is very volatile. Bitcoin transactions nowadays, take anywhere from seven hours to a couple of days before they are even confirmed! Many complaints and updates have been made to the coin and a hardfork took place which gave existence to Bitcoin Cash.
The transaction fees have also been pretty hefty lately. If we want to look at it from a technical perspective, Bitcoin transaction fees are calculated by the amount and size of each transaction. The fees that are paid by users, go to miners as rewards for the confirmation of the transaction. Transactions that have larger inputs, usually need more work. During times like this, when the market is dealing with a high volatility, miners like to deal with transactions that require less inputs. This means that the miners will not have to work as much and transactions with higher inputs will have higher fees. Many people dispute that these miners have powers and this leads to a centralized system.
Bitcoin Atom will be the newest hardfork on the blockchain system. The hardfork has been announced by an anonymous team that have claimed to use the same protocols as Nakamoto. The principles will be applied both on-chain and off-chain. The system will not be controlled by exchanges and will manage itself. The new hardfork consists of proof of work and proof of stake using the Bitcoin codebase. The fork will be taking place from January 24th to the 25th occurring on block 505 888.