Bitcoin - the most secure cryptocurrency
Bitcoin continues to gain popularity and occupies a significant share of the digital asset market, while other assets face difficulties.
If you want to learn more about the advantages of Bitcoin, consider the following points:
Bitcoin is best understood as a monetary commodity and serves as a store of value in the digital world.
Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to surpass Bitcoin as a monetary commodity because Bitcoin is the most secure, decentralized, and reliable, and any "improvement" would inevitably face compromises.
There doesn't necessarily have to be mutual exclusivity between the success of the Bitcoin network and all other digital asset networks. Rather, the rest of the digital asset ecosystem can serve different needs or solve other problems that Bitcoin simply doesn't address.
Other projects unrelated to Bitcoin should be evaluated from a different perspective than Bitcoin.
Bitcoin should be seen as an entry point for traditional investors looking to access digital assets.
Investors should adhere to two distinct concepts when considering investments in this digital asset ecosystem. The first model considers the inclusion of Bitcoin as a new monetary commodity, while the second considers the addition of other digital assets that exhibit properties similar to venture capital.
BitVM - the altcoin killer
Currently, many are discussing the Bitcoin proposal called BitVM. Let's talk about what it entails and why it is considered one of the key breakthroughs in the history of the crypto industry.
BitVM is a proposal that expands the capabilities of the Bitcoin blockchain, allowing for more complex tasks without the need for changes to the code. This makes the BTC project competitive and reduces the need for technical solutions from alternative cryptocurrencies.
On October 9, 2023, Robin Linus, a Bitcoin developer, published a technical document titled "BitVM: Compute Anything on Bitcoin." In this publication, a new way of using off-chain smart contracts on Bitcoin was proposed, eliminating the need for forks.
Off-chain transactions are transactions carried out outside the Bitcoin blockchain.
Smart contracts are a digital equivalent of traditional contracts that automate operations, such as calculations on a cryptocurrency network. Smart contracts gained popularity thanks to the Ethereum project, created by Vitalik Buterin.
A fork is a change in the project protocol that may require the creation of a separate blockchain to work under new rules.
BitVM is a "computational paradigm" that allows for the verification of any Turing-complete function using Bitcoin. This scheme can be used for offline computations required for working with smart contracts on BTC. Data verification will be based on principles similar to second-layer solutions for Ethereum, such as Optimistic Rollup.
BitVM expands the capabilities of Bitcoin, enabling the deployment of various applications, including games. Ethereum, the second-largest cryptocurrency by market capitalization, gained popularity due to smart contracts that allow for the creation of new applications on top of the platform. The description of BitVM's features enhances the competitiveness of Bitcoin and diminishes the value of developments in other crypto projects.
Additionally, Linus emphasized that BitVM allows for the connection of BTC with other chains, creating a prediction market and emulating new operations.
Crypto community reactions
Members of the crypto community have expressed their opinions regarding Linus's paradigm, presented in his work "BitVM: Compute Anything on Bitcoin". Many believe that this discovery is one of the most exciting in the history of the crypto industry. A promise to launch a demo version of the network appeared on the Super Testnet microblog, and the account owners believe that BitVM gives Bitcoin all the capabilities of the Ethereum virtual machine, making the project equal to Ethereum.
Reddit users have referred to BitVM as a solution that renders altcoins useless. Their logic is that there is no need to create new projects on separate blockchains if everything can be done on the proven Bitcoin blockchain that has been functioning for many years. This assumption has sparked a lot of discussion, and users have speculated that altcoins have demand not so much because of their technological characteristics, but rather because of the possibility of making profits from speculation.
However, Adam Back, a pioneer in the cryptocurrency industry and CEO of Blockstream, approaches this proposal with skepticism. He believes that the concept overlaps with the ideas of Bitcoin Core developer Greg Maxwell about implementing conditional BTC payments, which Maxwell proposed in 2016.
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