A number of applications are being built on Bitcoin and there is a natural evolution taking place. Sidechains could be the next step in boosting Bitcoin adoption as they allow for scalability and customizations while retaining Bitcoin´s security properties.
Bitcoins and other ledger assets can be transferred between multiple blockchains by a sidechain. It enables users to access new and innovative cryptocurrency systems using their existing assets.
Built on top of the Bitcoin-blockchain, e.g. the Lightning Network pushes the boundaries of Bitcoin payment capabilities with lower costs and faster speeds. Taking advantage of Bitcoin´s trust-minimized features, industry leaders like Microsoft work to build a decentralized identity platform on the Bitcoin-blockchain.
MVIS CryptoCompare Bitcoin Index
Source: MV Index Solutions. Data as of September 2019.
About the Author:
Ed Lopez, Head of ETF Product Management, is responsible for product and marketing strategy for VanEck Vectors® ETFs. He has over 20 years of marketing and product management experience within the financial services industry. Prior to joining VanEck, he served as Director of ETF Strategies and Product Intelligence at Rydex Investments and as Senior Product Manager with Ibbotson Associates. Furthermore, he is an ETF industry expert, spokesperson, and frequent panelist at industry conferences.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.