The cryptocurrency space is more than just the mere adoption of digital assets. The idea of digital currencies has also introduced the idea of decentralization and blockchain, the latter of which is one of the most sought-out technologies today.
As the crypto ecosystem continues to develop in terms of functionality, Ari Paul, Managing Partner at Block Tower Capital, recently listed out some of the upcoming fundamental changes which would improve crypto and decentralized networks around the globe.
According to Paul, one of the major developments with regards to Bitcoin, the largest cryptocurrency, is the addition of Schnorr signatures and Taproot. Both these developments are aimed at improving and extending Bitcoin’s privacy, functionality, and efficiency.
Andrew Poelstra, Lead Researcher at Blockstream, had also been vocal about the benefits of Schnorr Signatures, stating that the update would enable multiple signatures, effectively making transactions more secure as the number of participants involved in the multi-sig or any individuals addresses in the transactions would not be revealed.
Paul also cited the rapid growth of trading platforms like Omniex, Tagomi, Coinroutes, and FalconX, all of whom would help global liquidity when greater capital eventually is involved in cryptos. Even in the sphere of the decentralization network, there is an evident presence of middlemen. These trading platforms help investors and traders surrender far less capital when they are running transactions to exchanges and arbitrageurs.
Additionally, the emergence of institutional involvement with the likes of Fidelity and Anchorage outlines a major validation of trust in crypto-assets, Paul added. The growth of such prominent “third-party custodians” gives those, who do not want to “own their keys,” better alternatives than trusting random exchanges.
Further, Ari Paul also cited the development of “non-custodial decentralized finance” within the Ethereum ecosystem, which could change the theoretical concept of “be your own bank” and might turn it into practical reality.
Rapid innovation and contagious growth in an industry which did not exist 10 years ago only underlines the fact that any development in terms of finance, security and technology in the field of cryptocurrencies, is yet to reach its saturation point.