Bitcoin Drive Chain proponent Paul Stork believes that mainstream acceptance of BTC will increase the need for increased scalability and functionality in its infrastructure.
In a wide-ranging interview with Cointelegraph, Stork discussed the pros and cons of the high-profile approval of a Bitcoin (BTC) exchange-traded fund (ETF) in the U.S., and how institutional money will flow into the U.S. I mentioned the long-term effects of doing so. Ecosystem.
“It’s a sign of health, it’s a sign of validation. Bitcoin is certainly gaining recognition and its name is getting out into the public eye. It’s also a result of certain types of funds that have to flow through ETFs. It is,” Stork said.
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Co-founder of LayerTwo Labs describes Bitcoin ETFs as an “inevitable consequence of aging” and emphasizes that customers for BTC-backed investment products are different from everyday retail investors or hardcore Bitcoiners Did.
“ETFs are custodial in nature and have built-in reporting mechanisms to governments and nations. Nevertheless, the type of people who rely on ETFs are likely to self-manage their Bitcoin in any case.” will be low.”
Stork acknowledges that the hype surrounding Bitcoin ETFs could serve as an entry point for investors and individuals who are not yet learning about BTC. At the same time, focusing on its impact may draw too much attention to Bitcoin’s value rather than its underlying metrics and performance.
“The bad thing? ETFs keep people obsessed with prices. CEOs should never talk about stock prices, they should focus on what moves stock prices: product quality and employee satisfaction.” ” Stork added.
Bitcoin scaling is still a work in progress
Developed by LayerTwo Labs drive chain Over 4 years. Bitcoin Improvement Proposal (BIP) 300 and 301 overview How the Bitcoin network can create, delete, send and receive BTC from layer 2 blockchains, commonly referred to as sidechains.
Sztorc, the author of BIP-300, is a proponent of the functionality provided by Drivechain and has spoken at length about the intricacies of the two BIPs at several Bitcoin conferences in recent years.
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As liquidity flows into the Bitcoin ecosystem through major adoption-driving events, such as the approval of Bitcoin ETFs, the network is likely to experience higher trading volumes. This is a point highlighted by Sztorc, citing a statement from the creator of Bitcoin’s pseudonym.
“Satoshi Nakamoto said that in 20 years there will either be a lot of trading volume or no trading volume at all. The big blockers used that to say that Satoshi is a big blocker. But I’m pretty sure he’s right,” Stork said.
“There is no scenario where a billion people use another blockchain protocol and Bitcoin survives.”
The Lightning Network has been influential in providing a means for the Bitcoin network to process low-fee, high-throughput transactions, but it faces existing threats such as altcoin competition, hard fork campaigns, and extension blocking campaigns. To combat this, Sztorc argues that the ecosystem needs additional capabilities.
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“BIP-300 is about having a competition, and that’s what we need. Different software developers competing to solve the last part that people overlook. With sidechains, people Bitcoiners who don’t opt in will be able to play whatever games they want, but Bitcoiners who don’t opt in won’t have to worry about what the sidechain is doing,” Storck said.
As previously reported by Cointelegraph, BIP has played a key role in laying the groundwork for soft forks that help improve Bitcoin’s protocol and develop innovations like the Lightning Network.
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