Since the inception of the first cryptocurrency, Bitcoin, a number of improvements have been planned on its network. This was one of the reasons for the launch of the open-source project. However, the implementation of updates is a very complex process and requires not only technical knowledge but also the approval of network participants. And when the community cannot come to a consensus, then a fork occurs on the network, in other words, a hard fork. This opened up opportunities for the creation of new “improved” cryptocurrencies.
New versions of Bitcoin are the natural result of forking the blockchain structure that operates without a central authority. In fact, these forks arose from different points of view on the work of the project, and all new blockchains exist completely separate from the original and are aimed at “improving” some aspects that are undoubtedly lacking in the original Bitcoin.
The most significant are the colossal amounts of electricity consumed in the BTC mining process, shaky scalability, and questionable anonymity. And yes, despite the fact that today Bitcoin is the most popular cryptocurrency, the potential “risks” associated with its use make you wonder how long it will be able to hold positions.
In the pursuit of creating the perfect cryptocurrency, more than one project is competing. Forks have already been created such as Bitcoin Cash to address the scalability of the Bitcoin network, Bitcoin Gold to eliminate the need for expensive BTC mining, Bitcoin Private (BTCP) to ensure user privacy, and many others. However, none of these “solutions” are universal. In this regard, at the beginning of 2021, the Bitcoin Ultimatum (BTCU) project was launched, which is able to implement most of the utilities in one place for maximum efficiency.
Note that the BTCU blockchain is similar in concept to Ethereum and includes additional features that distinguish it from other BTC forks, namely the integration of smart contracts, as well as atomic swaps to implement cross-network transactions.
The main advantages of BTCU
To understand whether BTCU really occupies a leading position in the ecosystem, below are the main advantages of this project.
Validation and mining principles
Regulators, distributors, and validators in the BTCU network include reputable consultants, blockchain companies, and cryptocurrency exchanges that directly control the masternodes. This decision was made in order to unload the network and to avoid the classic extremely energy-intensive mining. In this regard, BTCU is based on the LPoS mining algorithm in combination with PoA, where the former is used for mining, and the latter is used to verify transactions.
The PoA consensus mechanism allows validators to achieve efficiency through a high level of network throughput (200 transactions per second), with the ability to scale up to 10,000 transactions per second.
It is important to note that the current throughput of the Bitcoin cryptocurrency is about 4 transactions per second, which causes a number of inconveniences for users in trying to conduct transactions.
It is worth remembering that the first and most important element of any network, especially when it comes to transactions, is anonymity. If a person for some reason chooses crypto payments as an alternative to the classical method, then anonymity is of no less interest than the absence of commissions and intermediaries. To maintain the anonymity of BTCU users when making transactions, the development team added the ability to conduct private transfers within the network.
In addition, the BTCU development team intends to introduce a decentralized multi-currency cryptocurrency wallet that will allow transferring BTCU coins and other cryptocurrencies using smartphones.
The BTCU team sets itself the task of developing the direction of smart contracts with the introduction of atomic swap technology in order to allow the execution of transactions not only within one blockchain protocol but also interacting with others, which will globally expand the capabilities of this technology. To execute secure transactions, Bitcoin Ultimatum intends to use smart contracts, which will save users from the need to look for intermediaries or other ways to protect against fraudsters.
Note that the BTCU development team is in constant search of innovative solutions for cryptocurrency users. This is vital because competitors and the technology itself continue to evolve over time. Thus, the BTCU project strives to closely follow the news and developments of the industry in order to become more effective and efficient every year, which will allow it to remain competent and relevant in creating new opportunities and solving problems.