Bitcoin is reportedly able to scale as an adopted store of value, via the assistance of second-layer protocols, but cannot go on-chain with its existing tech, claimed head of Abra.
Specifically, Bill Barhydt – head of the Abra digital finance wallet and exchange app – has reportedly shared his view, stating Bitcoin’s blockchain is encountering hardships regarding on-chain mass adoption of the asset as a store of value, with the existing tech of the asset.
“Bitcoin can certainly scale ‘off-chain’ today via third-party custodians such as exchanges and wallets like Abra or other so-called second-layer technologies such as Lightning”
“When held in that manner Bitcoin’s scalability is probably limitless. However, Bitcoin doesn’t yet have the scalability it needs to be held by billions of people as a store of value on-chain.”
Previously, Barhydt’s perspective of Bitcoin functioning like a store of value, the same as Bitcoin, going in a direction with increasing uncorrelation compared to mainstream markets. Achieving mass adoption as an international store of value, however, comes with additional requirements for the capability to deal with high traffic.
Various players in the sector have reportedly come up with proposals for bigger block sizes to fight issues regarding transaction speed. Bitcoin Cash (BCH) has reportedly forked off from BTC in 2017, arguing bigger block sizes to be the solution, while other camps eye at second-layer solutions, nominally the Lightning Network.
“To scale on chain to billions of people, new technologies will be required as well as dramatically increased block sizes. It’s possible that Bitcoin only scales off-chain to meet the needs of the masses in the future. Time will tell.” Barhydt reportedly added.