Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoin can scale as an adopted store of value using second-layer solutions, but not on-chain with its current technology says Abraâs CEO.
Bill Barhydt, CEO and founder of the Abra digital finance wallet and exchange app, said he sees Bitcoinâs (BTC) blockchain struggling when it comes to on-chain mass adoption of the asset as a store of value, given the assetâs current technology.Â
âBitcoin can certainly scale âoff-chainâ today via third-party custodians such as exchanges and wallets like Abra or other so-called second-layer technologies such as Lightning,â Barhydt told Cointelegraph on July 15. Â
He added:
âWhen held in that manner Bitcoinâs scalability is probably limitless. However, Bitcoin doesnât yet have the scalability it needs to be held by billions of people as a store of value on-chain.â
Bigger block size for on-chain scaling
Previous reporting revealed Barhydtâs view of Bitcoin as a store of value, similar to gold, traveling an increasingly uncorrelated price path compared to mainstream markets. Gaining mass adoption as a global store of value, however, obviously requires the ability to handle high traffic.
Through the years, a number of industry participants have proposed larger block sizes to combat transaction speed difficulties. Bitcoin Cash (BCH) notably forked off from BTC in 2017, debating larger block sizes as the answer, while other camps looked toward second-layer solutions, such as the Lightning Network, as a solution.Â
Barhydtâs comments show his confidence in second-layer solutions, although he did mention larger blocks for Bitcoin on-chain scaling. âTo scale on chain to billions of people, new technologies will be required as well as dramatically increased block sizes,â he said. âItâs possible that Bitcoin only scales off-chain to meet the needs of the masses in the future,â he noted, adding, âTime will tell.â
Abraâs app uses each assetâs blockchain
With over 100 different crypto assets on its platform, Abra hosts compatibility for multiple blockchains. âThe digital assets held in Abraâs system today are 100% native,â Barhydt explained. âThey use whatever platform each individual digital asset was built on across all hundred or so digital assets our Abra app supports,â he added, noting the presence of third-party asset custody coordinated in conjunction with the app.
Going forward, after a $5 million investment from the Stellar Development Foundation, or SDF, in May 2020, Abra now has its sights on also offering conventional banking features constructed on Stellarâs blockchain, Barhydt explained.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.