A team of Bitcoin engineers have just announced to the world a new initiative to solve the problems that Bitcoin currently has with scalability issues. The name of this initiative will be Bitcoin Operations Technology Group, also known as Bitcoin Optech.
The team will be a non-profit organization that will receive backing from many industry leaders and people interested in using the technology to achieve better results with Bitcoin. Some of the board members will be John Pfeffer, executive of Kohlberg Kravis Roberts and Co, Wences Casares, PayPal board member and Chaincode Labs, a cryptocurrency research and development group.
We're proud to announce the launch of Bitcoin Optech today. We're here to help Bitcoin businesses integrate scaling technology. https://t.co/btmDQ8YTn8
— bitcoinops (@bitcoinoptech) July 20, 2018
The Bitcoin Scalability Issues
Anyone who used Bitcoin during the period that comprised November to March knows how clogged the Bitcoin network can become when the token is popular. While the problems have diminished a lot since the price of Bitcoin fell, they will come back as soon as the price booms again.
Transactions could take days to be completed and, as a highly volatile token, the price that someone sent was not the same amount of money that the other person received, which caused problems that made many large stores stop using Bitcoin as a currency. Because of this, it is a popular opinion that the Bitcoin network has to become faster and more efficient in order to be scalable.
How Will The Bitcoin Optech Work?
At the moment, the project is just starting out, so the Bitcoin Optech will focus only on operational technical work. According to the project, elements like segwit usage, fee estimation and transaction batching will be studied before they can actually to develop solutions that will make the Bitcoin network more scalable to reach stability even when a lot of people are using it.
The members of Bitcoin Optech will work closely with other Bitcoin engineers to find solutions and even hold workshops to unite people and discover the answer for how to solve the issues.
What About The Lightning Network?
The Lightning Network was promoted as the big salvation for Bitcoin’s slow speed and scalability issues before it was ready. The network is a second layer payment option that allows the transactions to happen off the blockchain and be faster because of this, thus saving the time of the people who need to send or receive money when the network is too slow.
However, the Lightning Network is far from being a perfect solution. A recent study conducted by Diar has recently suggested that the LN is not as effective as it was announced and that it is not effectively routing payments as it was first believed. The success rate, study affirmed, was very low.
The developers defended the project explaining that the Lightning Network is still only in the Beta testing phase, but it has become clear that it might not be the perfect solution that people thought it would be.
The Bitcoin Optech is the next hope of Bitcoin in case the Lightning Network is actually the failure that everyone fears that it might be. Will Bitcoin be scalable one day? Follow our updates to find out.