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Expert Analysis

Bitcoin Scaling Solutions And Their Downsides

By Simona Mola and Zhong Zhang (March 6, 2019, 12:35 PM EST) -- Bitcoin was designed as a decentralized monetary system and an alternative to central banking. Decentralization implies that no one can unilaterally change the way bitcoin works or its transaction history. Since Satoshi Nakamoto released the original bitcoin whitepaper in 2010,[1] reaching and maintaining decentralization has been the priority of all technological developments. To this end, bitcoin relies on its technological design: open source software, public-key cryptography, blockchain data structure, proof-of-work mining and distributed full nodes....

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