With Bitcoin at the center of much discussion these days, it seems like a good time to watch how the legendary digital currency network has evolved.
Although BTC is the largest cryptocurrency by market capitalization, the underlying Bitcoin blockchain is often criticized for its lack of functionality compared to newer blockchains such as Ethereum.
Being a level 1 blockchain (which is also the oldest), Bitcoin contains some inherent design issues. But at the same time, the projects are working tirelessly to solve them, gradually adding new features to the network.
Furthermore, the Bitcoin developer community also launches regular updates to further optimize the network infrastructure to facilitate modern needs.
That said, here are three of the biggest misconceptions about Bitcoin and how a project is reversing this prevailing dynamic.
1. Bitcoin cannot scale
The average transaction speed on the Bitcoin network is around 7-10 transactions per second, which is much slower than second and third generation blockchain networks.
Yes, the problem of scalability plagues the Bitcoin network (and other blockchains too). To put this in perspective, traditional payment service provider Visa claims its network can deliver up to 65,000 TPS (transactions per second). If true, this speed outstrips even the fastest blockchains by a substantial margin.
This scalability issue has severely constrained the Bitcoin network, especially when it comes to decentralized finance (DeFi), non-fungible tokens (NFT), and other emerging industries. In this context, it is essential to understand that the Bitcoin network, in its original form, was not designed for high-speed value transfer.
It has limited bandwidth, and as a result, the number of transactions that can be processed at any given time is relatively less than in other networks. An average of 7-10 TPS is not enough to support DeFi transactions.
However, Bitcoin proved to be stable and growing over the years. To start investing just go to Immediate Edge registration and follow all the instructions to start trading.
2. Other blockchains have better smart contracts
Smart contracts were never part of the Bitcoin blockchain, not until the recent Taproot update. Several projects began offering smart contract functionality on the Bitcoin blockchain after the upgrade.
While there are several Tier 2 scaling solutions currently offering smart contract functionality on the Bitcoin chain, Stacks is the only Tier 1 blockchain that allows anyone to implement smart contracts and decentralized applications on the Bitcoin network.
Thanks to its inherent design, Stacks integrates the DeFi primitives with the security and stability of Bitcoin.
Given the visibility that Stacks contracts provide on the status of Bitcoin and Stacks’ ability to leverage the security and settlement benefits of Bitcoin, Stacks is particularly well suited for enabling true Bitcoin DeFi.
3. Bitcoin does not power the NFT coinage
In recent months, the Bitcoin NFT concept has taken hold, fueled in part by the ongoing developments on the Stacks blockchain. STXNFT is an NFT marketplace for Bitcoin NFTs built on the Stacks blockchain, it has positioned itself as the go-to option to mint Bitcoin hashrate protected NFTs.
For a platform that has been in the mainstream for just a year, STXNFT has already broken several records, with more than five of its projects raising over $ 100,000 through mints.
At the same time, many other projects surpassed $ 2 million in secondary sales.