Behind the volatility of the currency price is a stable improvement of the cryptocurrency technology stack

nRunaway Comment: Encrypting currency volatility has led some countries to refuse to accept this new thing, but the low-level blockchain technology can get more widespread attention and recognition. And with the development of these years, all the underlying technical problems are gradually improving. Including the blockchain management mechanism and incentive mechanism, both the capacity expansion technology and the consensus mechanism have been tested in practice. Zero-knowledge proof to solve the privacy and security issues has also been made. In addition to technology upgrades, decentered exchanges for cryptocurrency have also emerged in large numbers, believing they will enter a completely new phase of technology development.n
nTranslation: Annie_Xun
Look at the recent newspaper headlines, may leave you with familiar conclusions, the market is volatile, it is too early to treat cryptocurrencies carefully.n
The fact is that even the best-known developers in the industry do their best, the largest cryptocurrencies in the world are not only volatile but hard to use, at least not for the purposes of their founders’ programs.n
However, 2018 welcome us, the global fans are still trying to improve.n
So people believe that the various upgrades will add up to create a user experience that eventually begins to break the problem, which is the high cost and long wait most blockchain users have become accustomed to.n
In fact, blockchain users may see new capabilities and new scientific breakthroughs in the coming year, helping the industry move forward with this vision.n
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1, the chain of channelsn
What if blockchain-based transactions avoid the use of blockchain?n
This is the idea behind the chain of payment channels, a idea that emerged in 2015, but it may come true this year. This idea of ​​the main affiliate bitcoin lightning network is actually more general than this specific example.n
In fact, under-the-chain payments allow two people to freely use any type of cryptocurrency and make small payments to each other, and settle on the blockchain only when it is absolutely necessary.n
The idea is already in progress because of the potential impact; Ethereum developers are working on similar solutions, often failing to see the bitcoin counterparts.n
But 2018 will not only be confrontational, there are reasons to believe that this year will send a large number of actual transactions.n
The developer behind the bitcoin lightning network has announced that the successful test of the technology announces that it has almost completed. Meanwhile, Ethereum developers also revealed their versions, and Raiden Network has also been tested successfully, and a more ambitious version of Plasma will be released soon this year.n
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2, concerned about the real lifen
As heat has risen, the power needed to sustain cryptocurrencies has also drawn attention.n
Although the data are hard to pin down, the underlying agreement “proof of workload” at the bottom of bitcoin mining is defined as an energy-intensive process. So people are worried about power consumption will bring about large-scale environmental impact.n
This prompted people to look at one of the ideas that existed in 2011, that is, “proof of equity,” or “voting consensus,” that has been deployed but has not yet reached the scale of the Ethereum program.n
So this year, the long-awaited Casper is likely to be scrutinized, and early versions have begun to see the dawn.n
It is said that in the test network released on the eve of the New Year, a Casper is ready for operation. Karl Floersch, the lead developer behind the technology, told the media at the time that the code was “stuck”.n
The older versions of Casper from different Ethereum clients will also need to be adjusted, but Vitalik Buterin, founder of Ethereum, said it expects to test the technology with proof of workload in the future.n
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3, enhance privacyn
Privacy is ignored by most blockchain but improvements will be seen this year.n
Most notable is the improvement in zero-knowledge proof, which Buterin calls “the most hyped thing in the current encryption technology,” but its use has become easier and cheaper.n
This encryption technology hides information without threatening its effectiveness and has been slightly adjusted for use by Ethereum. Will allow a large number of start-ups to try privately-held smart contracts in novel, unexpected ways.n
And in a white paper earlier this month, the release of a zero-knowledge proof system that does not affect trust (trust was a contention in earlier iterations of the technology) will have an exciting impact.n
As the technology matures, the privacy of the Monroe and the zero currency will surely improve.n
While preparing for upgrades, the zero currency has been steadily advancing security, while Monroe has also gradually implemented “bulletproofs,” a feature that is 80% less expensive.n
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4, to the central exchangen
This is not another version of Coinbase or Kraken.n
As the industry’s largest exchange is struggling to meet the influx of new adopters, more and more projects are developing so-called decentralized exchanges. The term refers not only to new browser-based exchanges but also to software that users do not rely on central agencies for currency exchange.n
There are a lot of decentralized exchange projects in 2017, such as ShapeShift’s Prism, 0x, OmiseGo, Kyber Network, and many others.n
These projects are expected to accelerate this year.n
The current hardware wallet, Ledger, has been integrated with Radar Relay, a decentralized exchange that allows users to trade various tokens based on Ethereum without having to trust the endorsement.n
Although limited in functionality (only one wallet is supported and only Ethereum-based tokens are sent), many in the industry see it as the beginning of a future for crypto currency exchanges and a new era for technology itself.n

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