CNBC, an American economic media, reported on the 13th (local time) that Bitcoin, the No.
Recently, as Ethereum, which can perform more transactions than Bitcoin, has been in the spotlight, Bitcoin, feeling a sense of crisis, started to upgrade its system for the first time in 4 years.
CNBC reported that Bitcoin miners around the world have agreed to “Taproot” to improve the Bitcoin network. The upgrade will start in November.
The key point of the upgrade is to increase the security and efficiency of transactions. In particular, the focus is on upgrading ‘smart contracts’.
The goal is to lower the cost of smart contracts, which are payment contracts that are made automatically on the blockchain, and to make the space occupied on the blockchain smaller when these transactions are made.
“The most important thing in Taproot is smart contracts,” said Fred Thiel of cryptocurrency miner Marerson Digital Holdings.
Bitcoin’s upgrade is believed to be because Ethereum has recently made a leap forward and is looking beyond the stronghold of Bitcoin.
Ethereum is an upgraded system compared to Bitcoin, as it can make more contracts than Bitcoin and consumes less electricity.
Recently, Bitcoin has plummeted, but Ethereum has fallen relatively less, narrowing the market cap gap significantly. As of the 14th, Bitcoin’s market cap was $725.7 billion and Ethereum’s was $290.8 billion. The market cap difference is about $4300. When Bitcoin performed well, the market cap gap reached a trillion dollars.
