Amid outlandish price spikes and steady drops, its Bitcoins technological progress that heartens many about the cryptocurrencys future. Chief among the developments has been the deployment of the Lightning Network, which started live, public tests in January 2018.
The Lightning Network has long been a highly anticipated payment network that would exist on top of Bitcoin and could greatly increase the speed, cost-effectiveness and privacy for exchanging coins. It may solve one of the fundamental problems that Bitcoin is encountering as it grows in popularity: because every transaction must be verified on the blockchain. they are relatively slow and expensive to conduct
But the promise of the Lightning Network would allow Bitcoin users to create “payment channels” with one another. These channels would record transactions without sending each one to be confirmed, only sending final balances to be verified by the Bitcoin network and thus saving lots of time and fees. New transactions can be routed over existing payment channels, meaning that the number of individual channels can be kept relatively low.
Of course, this is an optimistic view of what is a complex and experimental protocol. The Lightning Network is still in its very early stages, and while its a potentially powerful technology, its unlikely to. by itself, remove all potential obstacles to large-scale adoption.
Nevertheless, it is one of the latest developments powering the world of Bitcoin.
Tim Drapers Big Bet on Bitcoin
One drawback to Bitcoins rise in mainstream popularity last year is that many people were learning about the cryptocurrency from those who had only discovered it a short time before.
A major part of understanding Bitcoin is knowing who and what supported it throughout its short and complex history. And despite popular belief, it was not only dark web coders and anarchists who kept it going.
One of Bitcoins earliest advocates. Tim Draper, is. in fact a third-generation venture capitalist Draper is the founding partner of Draper Associates. Draper Fisher Jurvetson (DFJ). the Draper Venture Network and Draper University, an online school with a residential program that teaches entrepreneurship globally. Drapers notable investing successes include Hotmail. Skype. Twitter. Tesla. Baidu and Coinbase. He has been ranked as number seven on the Forbes Midas List listed as the number one “Most Networked Venture Capitalist” by Always On. and named the World Entrepreneurship Forums 2015 “Entrepreneur for the World.”
So. its fair to say that his interest in cryptocurrencies and Bitcoin specifically marks one of the most forceful votes of confidence from the legacy financial sector for this space.
Draper first made Bitcoin-related headlines in 2014 after purchasing a lump sum of BTC auctioned by the U. S. government after its seizure of the Silk Road, the online illegal goods marketplace. Less than three months later, in an interview with Fox Business. Draper made an unprecedented, at the time, claim — bitcoins price would reach $10,000 by 2018. Though he concedes that the price just reached his prediction within the last month of 2017. he remains bullish on Bitcoins future and is interested in initial coin offerings (ICOs) and how blockchain technology will impact governments the world over.
“I think everybody is going to realize cryptocurrency is here forever.” he said. “Its going to be a major part of our economy. In five years, if someone tries to buy a cup of coffee with dollars, the barista is going to laugh at you because nobody will use it anymore.”