AMP now joins a myriad of schemes and new technologies promising to address Bitcoin’s scalability problem. The other options include SegWit, Schnorr signatures, and Lightning Network.
The AMP protocol would operate over the Bitcoin Lightning Network. Lightning Network is a decentralized system which allows participants to implement trustless micropayment channels to execute, off-blockchain, one or multiple payment transactions.
These channels reside outside the Bitcoin blockchain. Transactions take place between the channels. Upon completion, these transactions are transmitted, as a single transaction, to the blockchain.
Segwit is another crucial Bitcoin optimizer that can improve Bitcoin’s scalability and reduce Bitcoin’s transaction fees. SegWit would also help to improve Lightning Network’s transaction malleability.
Since SegWit’s activation in August 2016, developers have been increasingly integrating SegWit into Bitcoin wallets, and several exchanges are already implementing SegWit. Most recently, on February 5th, 2018, Coinbase announced that the final testing phase has begun and that Segwit will be available for Coinbase customers in the next few weeks.
AMP is another scheme that, along with Lightning Network, promises to help to solve Bitcoin’s scalability issue. Bitcoin enthusiasts and investors anticipate that AMP will receive support from all crypto stakeholders and move forward successfully.
How do you think Atomic Multi-Path Payments over the Lightning Network will impact Bitcoin transaction fees and speeds? Let us know in the comments below.
Author: Sara Bauer