Liquid Network

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Despite the numerous advancements Bitcoin has made since its inception in 2009, scalability remains an issue of significant concern. More than a decade later, Bitcoin still struggles to find a solution to the so-called “scalability trilemma.”&nbsp;
Fortunately, new innovative scaling technologies are continuously being developed and deployed to address these challenges. Read on to learn about some of the most exciting Bitcoin scaling technologies.&nbsp;
<h2 dir="ltr" id="span-segregated-witness-segwit-span">Segregated Witness (SegWit)</h2>
Segregated Witness, commonly referred to as SegWit, was a significant update implemented in 2017. It aimed to reduce the size of each transaction, allowing more transactions to fit into a single block.&nbsp;
Removing the signature information (the witness) from the main block of transaction data also solved the transaction malleability issue, paving the way for further Bitcoin scaling solutions.
<h2 dir="ltr" id="span-schnorr-signatures-span">Schnorr Signatures</h2>
Schnorr signatures were introduced to the Bitcoin network as part of the Taproot upgrade in 2021. This signature scheme allows multiple signatures to be aggregated into a single signature for a transaction.&nbsp;
This aggregation improves privacy by making transactions indistinguishable from each other and reduces the space they occupy on a block, thereby increasing the network's capacity.
<h2 dir="ltr" id="span-bitcoin-rollups-span">Bitcoin Rollups</h2>
<a href="https://sovryn.com/all-things-sovryn/bitcoin-rollups" target="_blank" rel="noopener noreferrer nofollow">Bitcoin rollups</a> are a relatively new concept being explored for Bitcoin scaling. Inspired by similar technologies in Ethereum, rollups involve bundling many transactions into a single transaction, which is then confirmed on the blockchain.&nbsp;
This method can significantly increase the number of transactions processed per second (TPS) on the Bitcoin network, potentially solving scalability issues. Two main types of rollups are being discussed: optimistic and zk (zero-knowledge) rollups, each with its unique approach to transaction validation and security.
<h2 dir="ltr" id="span-sidechains-span">Sidechains</h2>
Sidechains are separate blockchains that are attached to the main Bitcoin blockchain. They allow for the creation of new digital assets and the implementation of experimental features without overloading the main chain.&nbsp;
The main Bitcoin blockchain can maintain its integrity and security by processing transactions on these auxiliary chains while significantly increasing its overall capacity. Liquid Network is a notable example of a Bitcoin sidechain aimed at facilitating faster, more confidential transactions.
<h2 dir="ltr" id="span-batched-transactions-span">Batched Transactions</h2>
Batching is a technique for combining multiple Bitcoin transactions into a single transaction. This method is especially useful for services that process a high volume of transactions, such as exchanges and payment processors.&nbsp;
By batching transactions, these services can significantly reduce the space they take up on the blockchain, leading to lower fees and less congestion.
<h2 dir="ltr" id="span-lightning-network-span">Lightning Network</h2>
The Lightning Network is a second-layer protocol built on top of Bitcoin's blockchain. It enables off-chain transactions, which are faster and cheaper than on-chain transactions.&nbsp;
By creating a network of payment channels, users can transact with each other directly without having to wait for block confirmations. The <a href="https://thebittimes.com/5-ways-to-earn-sats-in-the-bitcoin-lightning-network-economy-tbt19555.html" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Lightning network</a> is particularly beneficial for small, frequent transactions, effectively decongesting the main blockchain.
<h2 dir="ltr" id="span-final-word-span">Final Word</h2>
As Bitcoin continues to evolve, so too do the technologies aimed at scaling its network. Research and development in areas like sovereign rollups and other layer-2 solutions hold the potential to further enhance Bitcoin's scalability.&nbsp;
The community's commitment to innovation ensures that Bitcoin remains at the forefront of Web3.
Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/6-technologies-used-to-scale-bitcoin-you-should-know-about-tbt86332.html">https://thebittimes.com/6-technologies-used-to-scale-bitcoin-you-should-know-about-tbt86332.html</a>

6 Technologies Used to Scale Bitcoin You Should Know About

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