Future Peek: Potential Developments of the Bitcoin Blockchain

Anyone who is even vaguely familiar with cryptocurrencies is certainly aware of Bitcoin. Launched in 2009 and still considered to be the flagship coin and network of the space, the entire sector is often affected as a direct result of how Bitcoin appears to be performing.
Considering the fact that Bitcoin (BTC) currently boasts—at time of writing— a market capitalization of more than $1.3 trillion dollars, it’s only natural that readers have begun to ask an important question. What is the future of Bitcoin and if we extrapolate a bit further, the cryptocurrency space as a whole? Before answering, it’s important to understand the role that the blockchain plays.

A General Overview of the Bitcoin Blockchain

So, why is the blockchain so important when predicting the dominance of Bitcoin—and indeed its application and adoption— may land in the future? A bit of clarification is in order before moving on. Most crypto experts will define any blockchain as a decentralized ledger that’s used to record transactions (in this case, Bitcoin). The Bitcoin blockchain represents a series (or “stack”) of transactions that have taken place over a specific period of time. In the event that a new transaction (block) is added, the others cannot be modified. This provides Bitcoin blockchains with progressively higher levels of security; one of its most popular attributes.
Taking into account the sheer size of the Bitcoin blockchain, it’s no surprise that a growing number of investors have chosen to participate. Here are some additional unique attributes to keep in mind:
– As the Bitcoin blockchain is decentralized, it operates on without interruption.
– Transactions are completed between individuals when compared to fiat currencies.
– Blockchains offer a libertarian edge that’s simply not possible when dealing with banks and other financial institutions.

To put it all together, there’s a difference between Bitcoin the currency and its blockchain. BTC is often used to define the token of the same name while the Bitcoin blockchain is the ledger used to perform peer-to-peer Bitcoin transactions. Critics may say that BTC and its original blockchain is bound by legacy technological foundations compared to newer blockchains such as Near and Solana, but with the help of Lightning network the transactions can actually be really fast even for the first major cryptocurrency. If you would like to learn more about the alternative blockchain, you can read the interview with Robert from Lightning Network that was conducted by Crypto Lists. 

What’s Happening with Bitcoin at the Moment?

Now that we’ve taken a look at Bitcoin the currency and its relationship with the blockchain, it’s wise to address a more pertinent topic. While the value of Bitcoin has indeed gone up significantly in the past few months since the onset of this new year, and the anticipated bitcoin halving event is around the corner, it’s not necessarily all rosy. Or, as some may say, this is only one side of the proverbial coin. 
A potential future black swan event for Bitcoin was described in detail by Fortune and while it’s unlikely that the real founder will ever come out, it could lead to a correction for the major cryptocurrency. Further potential aspects that could impact Bitcoin’s current trend, at least in Europe, is the new regulation that goes into effect in a few months. The new regulation is called Markets in Crypto Asset (MICA) and countries such as the U.S, U.K and Canada are likely to have a close look at the new regulation in order to perhaps adopt some similar strategies. 

What is Bitcoin Halving and Why is it Important?

The Bitcoin Halving is used to describe a technical event that reduces the number of new Bitcoins which can be mined by 50%. Although this might sound counterintuitive at first glance, it actually makes a great deal of sense.
Halving was actually built into the fundamentals of the Bitcoin ecosystem from the very beginning and the intention is simple. By restricting the amount of Bitcoin that can be mined, this action will serve to maintain scarcity. In other words, it’s used to counteract inflationary effects that might otherwise devalue BTC. This is a core tenet of supply and demand. The next halving event will take place in April 2024. What might halving mean for the sentiment around BTC? 
We should finally mention another issue known as a “fork” before moving on. A Bitcoin fork is a change in the mining protocol that results in the creation of two separate branches (known as “forks”). Perhaps the most well-known forking example that resulted in a new coin can be seen in the creation of Bitcoin Cash (BCH) in 2017. Many analysts are wondering if and when the next fork will occur. While there is no clear consensus, many feel that a forking event could take place (if at all) before the April 2024 halving. The logic here is that the mining fees for each block will also be halved; massively reducing incurred costs. It’s getting closer, so any new project would likely have to be in the final stages of launch preparation already.

Moving On: What Does the Next Decade Have in Store for Bitcoin?

It’s no secret that Bitcoin was created with altruistic goals in mind; namely anonymity and complete decentralization. Having said this, some feel that these visions have fallen short of the mark. Major cryptocurrency scandals such as the precipitous fall of FTX and so-called crypto “whales” have plagued the cryptocurrency ecosystem for some time.
There are also potential issues looming on both sides of the pond. For instance, a so-called “kill switch” known as the European Data Act came into force in January 2024. This legislation essentially outlaws certain types of smart contracts that are commonplace throughout blockchain—though, perhaps crucially—not Bitcoin as of yet . In theory, this could dramatically hamper European-wide BTC trading. Let’s also remember that the United States Security and Exchange Commission has yet to make a final decision in regard to whether or not other cryptocurrencies should be classified as securities or commodities, Bitcoin falling under the latter distinction.
Having said this, the Bitcoin bulls are not going anywhere anytime soon. Some feel that BTC and other major coins such as Litecoin in particular could become mainstream digital payment options; an obvious benefit in terms of stability and liquidity. Future hard forks within the BTC blockchain could likewise create even more investment opportunities.
Last but not least, it would be difficult to discuss this topic without mentioning the ongoing adoption of the Lightning Network. Due to the limitations of the existing foundational Bitcoin network, this ‘second layer’ is a fantastic addition for those who wish to continue using BTC, but with the—excuse the pun—lightning speeds and low costs associated with other blockchains.  

A Brave New World

We can now see that Bitcoin and its blockchain are set to undergo some major changes in the coming months. While these could prove to be quite positive from a short-term perspective, the future of Bitcoin—and BTC as an extension— as a whole is yet to be written. This is why taking the factors outlined above into account is crucial for those who wish to remain ahead of the digital curve.