The Bitcoin Network Upgrade is closely related to each of us and will Eventually Affect the Whole Ecosystem

In September, Coinbase Ventures and other investment institutions invested US$8.5 million in a portal to make it a self-custodial layer 2 wallet and a real Bitcoin cross-chain DEX, making the exchange between Bitcoin and other digital assets fast and safe. The transformation of Bitcoin will promote Bitcoin’s DeFi to the masses. Regarding why they chose to build on Bitcoin, Portal CEO Martindale commented: “We believe that Bitcoin provides the much-needed financial infrastructure for a free and uncensored Internet in the future, and the Internet will be built on this foundation in the future. Although we started with a P2P exchange, but our mission is to become a decentralized, peer-to-peer human interaction platform… whether it’s communications, financial transactions or social media.” Coincidentally, this week is the third week of October, the first Bitcoin futures ETF, the Bitcoin futures ETF of ProShares of the United States will begin trading on the New York Stock Exchange Arca. The ProShares Bitcoin Strategy ETF will provide exposure to Bitcoin futures contracts instead of the spot market, and its trading code is “BITO”. The ProShares Bitcoin futures ETF began trading at a price of $40 per share, and the closing price of the day was $41.94, an increase of about 5%. The value of Bitcoin soared this month and on Tuesday, when the new ETF was unveiled for the first time, the price of Bitcoin broke through $64,000 in the afternoon, which was only a few hundred dollars behind this year’s peak, and compared with the price at the end of September, the increase was more than 40%.

Matt Hougan, Chief Investment Officer of Bitwise Asset Management commented: “From the strong performance of the ETF on the first day of issuance, it can be seen that a large amount of funds are still excluded from the cryptocurrency market at this stage. Over time, this situation will improve when changes occur and funds will enter the market. In the long run, this is a very optimistic signal.” More and more mainstream institutions are turning their attention to Bitcoin and returning to the Bitcoin market. In order to make it easier for the public to obtain Bitcoin, we, as the forefront leader in the digital world, aim to implement practical applications under the Bitcoin network. We believe that more and more investment institutions and project parties are eagerly looking forward to the expansion and application of Bitcoin.

Next month will usher in a new opportunity for the development of Bitcoin. This is a topic that looks more professional, but in fact it is closely related to each of us and has a far-reaching impact. That is, the Bitcoin network is about to usher in a very important upgrade. This is the first time in four years that the Bitcoin network has passed through the entire community, and all miners voted unanimously for an upgrade. This upgrade is named Taproot.

This upgrade uses Schnorr signature + MAST contract, based on the underlying technology of Bitcoin’s blockchain, to ensure that users maintain complete control of the funds provided in the transaction, and prevent counterparty risks, capital losses, and data exposure. It incentivizes users to conduct anonymous transactions on the block while ensuring security. After the Taproot upgrade, all transaction records or transaction records with the same conditions will be automatically packaged and encrypted. For individuals, there is privacy isolation with Taproot. For the entire network, individual users can avoid using a large amount of network resources to query some unimportant transaction records.

For some organizations or authorities, when the records are retrieved through the Taproot protocol, the organization can also obtain data results while protecting privacy, and at the same time bring regulatory demands.The availability of the soft upgrade of the Bitcoin network “Taproot” is a big step for the crypto industry to understand and supervise Bitcoin. Thanks to Taproot’s MAST+Schnorr function, complex smart contracts that protect and regulate Bitcoin consumption can be hidden. This represents a major victory for Bitcoin user-privacy, and it is also something ComingChat, as one of its core supporters, is looking forward to see implemented. ComingChat CEO Guanghua and its core development team recently talked about the upcoming Taproot upgrade which will benefit the Bitcoin network.

“We seized this opportunity and as a milestone in the blockchain industry, Taproot will be another application for ComingChat. The upgrade opens many doors.”

ComingChat will launch the first application upgrade on the market based on the Taproot upgrade and actually land the application-Threshold Wallet in November. We have noticed opportunities in the Bitcoin network for a long time, whether it is technology or products. We aim to make Bitcoin available to more people and after years of hard work, ComingChat has built a Bitcoin ecological network. From the establishment of the Bitcoin layer2 network in 2017 to the launch of the first social application linked to Bitcoin and serving the public in 2021, we are always at the forefront of the market as the market leader.

Just as Gavin Andersen expected, in 2100, even if in the end, the number of new BTC produced on the BTC network is zero, and the BTC circulating on the BTC network is zero. Nothing needs to be fixed, and the chain stops, but about 20 million BTC still exists and circulate on other blockchains. They are valuable because of their limited number, and BTC is the first scarce digital asset. Most of the wallets on the market are single-signature wallets. This type of wallet has serious security problems. Once the only private key corresponding to the wallet address is leaked, all assets are at risk of loss. The public’s attention to the privacy currency market has led to an increase in user demand for wallets. But with today’s technology, once the private key is lost or the coins are sent to the wrong address by mistake, it is almost impossible to retrieve the currency, and this batch of currency is equivalent to being wiped out.

(Number of Blockchain wallet users worldwide from November 2011 to October 10, 2021(in millions)

Compared with single-signature wallets, multi-signature wallets require multiple private keys to sign together. Therefore, a single user’s private key cannot be transferred if it is known or lost by others. Obviously, multi-signature wallets have better asset security than single-signature wallets. As the price of Bitcoin has risen, the market demand for multi-signature wallets has also risen. The Lightning Network as we know it is based on multi-signature technology to increase the scalability of Bitcoin. The upgrade of threshold signature technology will connect to the Lightning Network and continue to serve the scalability of the Bitcoin network. With the threshold signature technology brought by the Taproot upgrade, the threshold wallet itself has a level higher than the multi-signature wallet. Users can not only control the ownership and privacy of the account, but also the transaction fees incurred by their transaction circulation will be lower than before the upgrade.

We believe that the fundamental driving force for stimulating the market is the circulation of capital. The more capital is invested in the market the more it would help generate capital and further expand the currency market.

This year can be said to be the fastest year for the development of private currencies. Setting aside the soaring value of Bitcoin, we focus on the practical application of Bitcoin.

By adopting Bitcoin as legal tender, El Salvador is already helping “baby” currency to transcend value storage use cases and enter the medium of exchange.

The Twitter application Lightning Network supports IOS users to use bitcoin for rewards. When choosing options that satisfy globalization and accessibility, the Twitter team believes that bitcoin is one of the best choices. Even though it is not easy for everyone in the world to use Bitcoin, Bitcoin is still considered one of the best solutions.

Domain name giant Namecheap has set up the Bitcoin Lightning Network as a payment method on its platform.

As the demand for the Bitcoin market grows, more and more software companies and traditional conservative institutions enter the Bitcoin market through payment solutions or direct investment. Bitcoin has been recognized by more and more mainstreams, and its market value has grown with the market. As the market expands, the existence of multi-signature addresses will also grow and this is the opportunity ComingChat sees. After the Taproot upgrade, the next things are left to the downstream ecology, which may be a longer road to popularization than Segwit.

As Schnorr Signature and Taproot improve more scenarios related to multi-signature, it can be expected that for professional users, professional institutions, and even projects that rely on multi-signature (such as cross-chain schemes) with more complex multi-signature requirements, they Will be the first beneficiaries of Taproot. In any case, even if this is not a highly user-aware technology upgrade, Taproot will eventually achieve more diversified multi-signature, more private address types, and potentially complex logic support due to the integration of various infrastructures and reduce transaction costs and other aspects, which will ultimately affect all users in the ecosystem.

ComingChat strives to be the first Taproot-upgraded wallet application on the market. There are more and more cryptocurrency users every day and in order to make each user-transaction safer and more controllable, ComingChat Threshold Wallet accelerates the adoption of the Bitcoin network. It allows users to store and circulate Bitcoin at extremely low fees, making users’ lives easier.

The ComingChat development team has updated the progress of the threshold wallet development:

The development team has completed the code and development of the entire process of aggregated public keys, aggregated signatures and signature verification. They’ve also completed the startup of the threshold wallet test chain and the deployment of threshold signature code, the development and design of the main process UI interface. The next step is to plan the joint debugging of the front and rear ports of the threshold wallet.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
ComingChat

ComingChat

ComingChat is an encrypted messaging app with digital asset transfer function