Developing a Proven Scalable Transaction Protocol for the bitcoin Cash Project

One of the more controversial topics in the world of digital currency, is how exactly the bitcoin cash concept is supposed to play out. The chief reason behind his recommendations is the proposal of an experimental new Bitcoin Cash Development Fund that will provide a number of opportunities for investors to fund the technological development of various other related projects. This includes the bitcoin ATMs as well as other innovations that are being developed for possible implementation. Proponents of this idea, such as Bruce Claypool argue that there are several problems with the way the system is set up now. Specifically, he highlights two major problems that he says can result in the effectiveness of this new digital currency. Specifically, he refers to as follows:

The first problem is related to the handling of wallet data. Many people worry that the bitcoin cash development team may run into a security issue if they begin to use the same infrastructure that is currently used by the bitcoin network. Specifically, some people have been concerned that sensitive data, including possibly even passwords, could fall into the wrong hands. If this is indeed the case, it would be a huge setback for this emerging technology. However, according to Claypool, it is not the intended design of the protocol that could cause the issue; rather it is a fundamental problem with how wallets normally work.

The second major concern is related to the difficulty of tracking all of the activities of all of the different users of this new form of digital currency. It has been noted that the Satoshi client developers have always discussed the need for having a system where all of these transactions could be tracked. This was done primarily in order to provide a higher transaction throughput for users. As such, the proposed development plan would provide for greater flexibility regarding the fees that users would be required to pay in order to access this improved security measure.

Finally, there are concerns about scalability. There have been many discussions regarding whether or not the bitcoin protocol can scale to allow for more than one hundred thousand transactions per day. In the past, many exchanges have attempted to use large blocks of unprocessed transactions to solve this problem. Unfortunately, this proved to be very unfeasible as well as inconvenient. This problem became particularly prominent after the implementation of the PPC industry-standard payment channel technology called micropayment.

Claypool notes that this scalability issue can be solved in a number of ways. First, he explains that by leveraging the multiple capabilities of multiple teams working on different aspects of the project, it is possible to leverage off of one part of the team while simultaneously ensuring that transaction fees remain low. He states that there are two methods that this can be accomplished. The first method involves allowing all of the participants in the developer community to rewrite the entire code. The second option allows for the addition of new features as well as the addition of old features at a predictable rate.

Regardless of which path a project takes, Claypool remains optimistic regarding its ability to solve scalability issues. "I think we will solve the problem of how to increase the capacity of the network pretty soon," he states. "We already know what the solution is." As proof, he offers a two-week-old experiment that is currently being used by four different companies. The company involved in this experiment processes around twenty-five thousand dollars worth of transaction across all four networks on a daily basis. This proves that this solution can work and is likely to be adopted by companies looking to deal with high volumes of activity on the network.