Bitcoin, the king of cryptocurrency may be hot on its bullish trend, trading at over $8600 dollars at the time of writing. But there is fear it may not end up the right alternative for the traditional payment system.
This means another technology may likely take the leading position of the digital currency.
What is Affecting Bitcoin Performance?
Since creation, Bitcoin performance has been hampered by scalability issues. This issue was rightly identified at the time the creator of Bitcoin Satoshi Nakamoto made his proposition for the digital asset. James A. Donald made an observation, he said;
” It does not scale to the required size”
Ten years later, this issue is still affecting the Bitcoin, leading to the branching of different Bitcoin-networks. Also the idea of the Lightning Network which was initiated by Satoshi but formalized by Joseph Poon and Thaddeus Dryja.
Hope was that this new technology which operates separately from the blockchain as a second-layer will rescue Bitcoin.
Lightning Network Will Not Stop Bitcoin Replacement
Though the Lightning Network was designed for Bitcoin, it is now being developed for a set of other digital currencies such as; Stellar, Litecoin, Zcash, Ether, and Ripple.
Already, Ripple blockchain technology is the fastest in payment processing compared to Bitcoin. Currently, Ripple network processes 1,500 transactions per second, while Bitcoin only process 3 to 7 transactions per second.
The need for digital currency is to offer a better peer-2-peer transfer experience, than what the traditional payment system can offer.
Bitcoin cannot even measure up to the transaction rate of Visa that averages 24,000 transactions per second and 50,000 at its peak. Bitcoin Cash average transaction rate per second is 61.
This drag also makes Bitcoin processing fees higher than that of other crypto assets. Though that can be taken care of by the Lightning Network, payment processing is still cheaper with Ripple XRP.
The digital asset which measures up to both corporations and individual demand for fast and easy payment processing will likely replace Bitcoin.
Disclaimer: Article not written for financial purposes, it is written solely for educational and informational purposes.