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Bitcoin [BTC] can achieve better scalability, security via Schnorr Signatures, claims Andrew Poelstra

Biraajmaan Tamuly



Bitcoin [BTC] can achieve better scalability and security via Schnorr Signatures, indicates Andrew Poelstra
Source: Pixabay

The technology behind the blockchain industry and cryptocurrency have been deemed by many as a revolutionary development of the 21st century. The digital framework which maintains and improves the tech requires constant implementations to eradicate bugs and tackle issues like scalability and security attached to crypto-assets.

Bitcoin Cash [BCH] recently announced it was going to add Schnorr Signatures to the network to improve the security and enable faster transactions.

In the light of this event, Andrew Poelstra, the Director of Research at Blockstream, said that the implementation of Schnorr Signatures to Bitcoin would help the largest virtual asset create multi-signatures.

Poelstra stated that Bitcoin used ECDSA because of the open SSL library and during the early development of Bitcoin, it completely depended on open SSL for its core cryptography. He said the Schnorr signature provided a similar alternative to ECDSA in terms of size and performance characteristics, but it enabled Bitcoin to easily implement some of the “out of bound protocols” in the network.

The major plus point of Schnorr Signature was that it enabled the users to create a multi-signature between a group people where signers can come together to combine their public keys into a single joint key that represents all of them, and when they want to initiate transactions, they need to do an interactive protocol to produce a single signature to move coins from one wallet to another.

Poelstra said,

“You can do this in a way that the resulting signature has the same size and has all the same properties as a signal signature. You get better scalability and better privacy because they are no longer revealing the original participants or even the number of people participating.”

Additionally, Poelstra stated that if Schnorr signatures are implemented ECDSA will not be particularly “stripped out” and there was a possibility to have both.

He stated,

“I think there is a possible way to remove ECDSA from the Bitcoin network via a soft fork but there is no particular reason to do that.”

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

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ErisX goes all hands on deck to launch a Bitcoin Futures market




ErisX goes all-hands on deck to launch a Bitcoin Futures market
Source: Unsplash

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

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