Security, speed and decentralization. How the BTCU blockchain works
Blockchain projects usually revolve around three main concepts: decentralization, scalability, and security, where:
- Decentralization — the creation of a blockchain system that does not rely on a central government;
- Scalability — the ability to process an ever-growing number of transactions;
- Security — the ability to work properly, to defend against attacks, errors, and other unforeseen problems.
One of the projects that managed to implement all these elements and did them all justice is Bitcoin Ultimatum (BTCU).
Fundamental elements of Bitcoin Ultimatum
The Bitcoin Ultimatum network operates on the basis of principles such as decentralization, scalability, security, and providing its users with cutting-edge technologies to implement ideas.
Decentralization is a key component of the blockchain. In traditional finance, the system is completely centralized, with clients leaving their assets and personal data in the hands of banks and other third-parties.
Bitcoin and other cryptocurrencies have offered a decentralized and transparent alternative for issuing and storing funds without the need for a centralized facility. Decentralized systems are necessary because they allow ownership without need for permission. Anyone can use and build on the platform according to their own desire and vision. Decisions are made by consensus: transactions are approved by a group of nodes, not a single one.
Once these transactions are agreed upon, they can neither be changed nor altered. Trust is not an issue here.
However, one of the biggest concerns when it comes to decentralization is its speed. If a transaction requires multiple confirmations to reach consensus, then it will take longer to be done rather than if the transaction were to be confirmed by a single entity.
Bitcoin is known to be highly decentralized, but at the same time quite slow. This is where Bitcoin Ultimatum comes to shine once again as it solves this problem by instantly processing transactions.
Scalability is essential for mass adoption. The question is how long can a blockchain system withstand and whether it can run smoothly with increased demand.
As the popularity of the platform grows, BTCU’s scaling speed can reach up to 10,000 transactions per second.
Blockchain security is paramount. With a lot of high-profile exchange hacks and manipulation of vulnerabilities in the source code, it is becoming apparent that many crypto projects have chosen to focus on decentralization and scalability, leaving security out of sight.
The successful development of the ecosystem, despite all the advantages, depends on the reliability of the source code. Because of its transparency and the potentially lucrative benefits to be gained from a successful attack, blockchains are becoming prime targets for hackers.
BTCU prioritizes security. The platform is based on reliable and secure software. The network uses Zerocash based on ZK-Snarks (zBtcu), a new privacy protocol.
Security creates the needed foundation for both decentralization and scalability to flourish and grow on.
Decentralization is a time-consuming process, while scalability is an aspect that should always be improved.