Bitcoin analysis for 09/10/2018
The creator of the Bitcoin protocol (BTC), Mark Friedenbach, presented the method of Bitcoin scaling at a workshop in Tokyo on October 5, which, according to him, will not require hard work. The new concept presented at the Scaling Bitcoin workshop, titled “Forward Blocks”, suggests a significant increase in chain performance by changing the Proof of Work (PoW), which is done as a soft fork, combined with the use of the private book alternatives. The application describes a scaling method that allows you to increase the size of billing transactions to 3584x current levels and improve resistance to censorship by means of chipping. During the presentation, Friedenbach proposed significant improvements in Bitcoin transactions. The so-called “transformation of soft forks” means strengthening the rules of consensus, in which old nodes still see the progress of the chain.
In his presentation, Friedenbach emphasized the role of sharding. The name gained the most popular due to the upcoming major improvements of Blockchain Ethereum (ETH). Declared in relation to Ethereum by co-founder Vitalik Buterin in April 2018, this term means a method of increasing the number of transactions that Blockchain can process. The idea of shaking is that in the case of chain transactions many network computers can share the transaction load between them.
Friedenbach, who was also a contractor for NASA, claimed in his speech that he did not want to initially consider Bitcoin scaling solutions, but he was thinking about the development of a double change PoW, in which a new PoW with soft forks is introduced. By suggesting adding another PoW algorithm, the developer stressed that his work is not a proposal for further changes, but rather an idea that other developers should take into account.
The scalability problem of Bitcoins is one of the main topics of discussion around the main cryptocurrency. In July this year, a group of engineers announced the launch of Bitcoin Operations Technology Group (Bitcoin Optech) to address the issue of scaling the Bitcoin blockchain. The non-profit team is supported by top industry players, such as a PayPal board member. Wencesa Casaresa, member of the board of Kohlberg Kravis of Roberts & Co. Ltd, John Pfeffer and research and development team of Chaincode Lab’s cryptocurrencies.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market is now trading inside of the resistance zone between the levels of $6,550 – $6, 603 after making a top at the level of $6,615. Currently, the price is trading around the level of $6,550 as the bears are pushing the price lower towards the weekly pivot at the level of $6,487. The larger time frame trend remains down.