2021 New Bitcoin Tech

Cryptocurrencies — also called crypto — often make news headlines because of investors like Elon Musk and Mark Cuban. Influencers like these billionaires make Bitcoin, a volatile cryptocurrency, more attractive to the public. There’s no better example of a high-risk, high-return investment than this crypto type.

Before investing your hard-earned money in Bitcoin, make sure you know everything there is to know about it. Aside from evolving consumer needs, technology plays a vital role in determining Bitcoin’s value. Let’s go through some of the new technologies Bitcoin investors can look forward to: hardware wallets, Schnoor/Taproot upgrade, and 5G use.

Hardware Wallets

Contrary to the name, hardware wallets do not store cryptocurrencies; that’s the role of blockchains. Hardware wallets store private keys — typically a multi-character number and letter combination — away from the digital world. Hackers will have a hard time breaking into them since they are offline.

We recommend using these offline tools to sign in and confirm Bitcoin transactions. As with passwords, you can choose phrases that will help you restore private keys if you forget them.

Last June, Twitter and Square CEO Jack Dorsey claimed the latter company was open to creating a hardware wallet for Bitcoin. Jesse Dorogusker, Square’s hardware lead, confirmed the statement earlier this month.

As a financial services and digital payments company generating billions in revenues annually, Square can take Bitcoin on a mainstream platform. The team is pleased with the crypto community’s encouraging comments toward the project.

We look forward to having the Square team at the forefront of this advancement. It will enhance the security of Bitcoin investors.

Schnorr/Taproot Upgrade

Schnorr/Taproot has been working on a Bitcoin privacy and scaling upgrade, which has progressed into code. The news has excited the community because it offers several unique technologies with its proposed upgrade.

Merklized Abstract Syntax Trees (MASTs)

Inspired by Merkle trees and abstract syntax trees (ASTs), MASTs make smaller, more private, and larger smart contracts for Bitcoin possible. While ASTs help split projects into individual parts, Merkle trees allow the verification of each one without entire programs.

Schnorr Signature Scheme

When Satoshi Nakamoto started developing Bitcoin, one of the most crucial decisions was which signature scheme to use. At the time, the open-source Elliptic Curve Digital Signature Algorithm (ECDSA) was the most viable choice.

Pieter Wuille and others contributed to factors that transformed Bitcoin’s ECDSA into a faster, more efficient program. After years of research, developers believe the Schnorr Signature Scheme can drastically improve the privacy of Bitcoin transactions.

Taproot Upgrade

Because of higher efficiency, Bitcoin smart contracts currently run on the ethereum network. However, experts believe the Taproot upgrade will enable smart contracts to run more efficiently at lower costs. This upgrade can empower Bitcoin transactions to integrate with mainstream finance.

5G Use

5G is a new global internet standard designed to connect everyone using any device seamlessly. It aims to provide consumers with peak data speeds, massive capacity, and a uniform experience across different platforms.

Many Bitcoin investors don’t realize that this new internet standard can transform cryptocurrency transactions. It can influence mining assemblies, Defi applications, and limitations previously set by lower internet quality.

Trade Like a Pro

Before investing in crypto, make sure to read studies, news articles, and testimonials about this volatile currency. Apart from consumer demands, technology also plays a crucial role in Bitcoin value.

Jon
Opinion writer on 7trade7