Bitcoin developers are working on a new protocol that could make offline BTC transactions a possibility in future. Under the Bitcoin Improvement Proposal (BIP 174), the developers are proposing a way that will allow blockchain to support Partially Signed Bitcoin Transactions.
Bitcoin PSBT Protocol
The new protocol establishes standard formats that bitcoins users will be able to use to sign transactions without having to upload them into the network immediately, as is the case now. While the new protocol is still in development, a large number of developers are believed to have worked on it, going as far as carrying tests.
Some of the high profile developers working on the new proposal include Andre Chow as well as Blockstream co-founder, Peter Wuille, who participated in the development of Segregated Witness. Coinkite founder Peter Gray is another developer that has shown keen interest in PSBT going as far as developing a portfolio, dubbed Coldcard that supports transactions powered by the new protocol.
“The new Coldcard hardware wallet is based on PSBT (i.e., BIP 174 as published), and we consider it ?PSBT Native.? It can add signatures to PSBT files delivered on MicroSD card and/or over USB and is able to finalize PSBT files for lots of simple cases. It already works well against the existing BIP174 pull request,? said Mr. Wuille.
Bitcoin Blockchain Improvements
The new solutions have gone great lengths in strengthening Bitcoin blockchain at a time when it is clobbered with scalability issues. Lightning Network and BIT 174 are some of the solutions that are now looked upon to enhance Bitcoin Blockchain usage. Segregated Witness, on the other hand, should address the scalability issue that has stifled Bitcoin blockchain usage.
The future looks bright for Bitcoin if the new solutions are anything to go by, given that they are expected to address crucial underlying issues. The cryptocurrency has also started to spike higher in response to the proposed network upgrades. The digital currency is currently trading at the $7,641 with all indications pointing to further movements on the upwards above the $8,000 mark.