Schnorr Solving Two of Bitcoins Biggest Problems
Feb 12, 2018 Posted / 6368 Views
If you would ask any of the Bitcoin followers about the biggest problem encountered by them then that would be its scalability resulting into the multi persons' frictionless experience. Bitcoins have a limited space in a block for a transaction. There is a need of scaling in Bitcoin technology but it has various options regarding that. First one is minimizing the transactional costs and the second one is building and maintaining trust by eliminating the third party.
As we know that there is no named founder of Bitcoin, so the decision needs to be taken by the involved individuals such as investors, stakeholders, and miners. One of the proposed technology update after SegWit, to improve scalability is through Schnorr Signatures.
While conducting a Bitcoin transaction, it is initiated through signature and every signature covers space. When it comes to multiple transactions which means sending money from the various addresses which will further cover signature space. And the charges paid to miners is directly related to the size of a file. To eliminate these extra charges the idea of Schnorr signatures came into existence. Reportedly, it is estimated that this will reduce the storage charges by 25%. And enhance security as well. Schnorr signatures offer signature scheme alongside Elliptic Curve Digital Signature Algorithm (ECDSA) and also signature aggregation.
Read More Related Articles
The basic difference between ECDSA and Schnorr signature is that in ECDSA every transaction is signed individually while in Schnorr signature all data is signed once only.
"Schnorr signatures and the applications they enable generate high hopes. As evidenced by the recent scaling debate, any efficiency improvement is highly beneficial to bitcoin." - Yannick Seurin, ANSSI
The development of Schnorr started in the year 2012 which took a good amount of time due to various reasons. Firstly, the number of people aware with the development technology of Bitcoin and cryptography is not much. Secondly, bitcoin is a big platform so before revealing such change there was a need of an extensive check.
As per a bitcoin core contributor, Nicolas Dorier, the execution of Schnorr technology will still take time. Although a discussion regarding the same has been observed at various communication platforms.
Even Blockstream co-founder, Pieter Wuille stated in a presentation -
"I would like to see what we've been working on here merged into bitcoin, but that's a lengthy process."
So lets wait for the upgradation...
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.