Bitcoin has been going through a rough patch for the past few months and the Bitcoin community is unsure about the future of the cryptocurrency. However, there are some technological developments on the way for the Bitcoin blockchain over the past few months.
Bitcoin’s infrastructure is being improved as time goes on and some of the changes being planned may potentially reduce the transaction fees for Bitcoin as well as create off-chain solutions for payments making it easier to use.
For the solutions to be implemented a core technology like the Segregated Witnessing (SegWit) needs to be widely adopted.
This isn’t an easy solution to implement in a large scale. It will require creating a series of different outputs without affecting the total transaction weight. This feature will help improve scaling in the Bitcoin blockchain. The number of transactions will not increase but more outputs will be allowed per input. Batching aggregates different transactions and make them into a single transaction by increasing the number of outputs per input.
Schnorr Signatures Solution
This solution will improve scalability for Bitcoin by aggregating multiple signatures required into one signature which can be used to unlock the transaction output. The script will have one signature that represents an aggregate of individual signatures. This will reduce the size of on-chain transactions, increase the speed for validation, and, improve privacy.
Atomic Swap Solution
This concept will allow the automatic exchange of cryptocurrencies based on language SCRIPT. It achieves this by opening one lockbox and giving another party the power to open another one. Each lockbox needs the signature and key to be opened so both will be secure. If something goes wrong, the lockboxes will refund both agents within 48 hours. This solution reduces on-chain privacy but can be effective for off-chain protocols.
If these projects are completed and implemented successfully, the Bitcoin blockchain will be improved significantly.