Scalability is a growing concern for Bitcoin as its popularity grows. Many blockchain enthusiasts have concerns about Bitcoin’s longevity. In recognition of Bitcoin’s shortcomings, but inspired by Satoshi Nakamoto’s vision for a cashless, peer-to-peer financial system, Bitcoin Latinum implements necessary algorithmic enhancements, putting scalability and security concerns to rest.
Bitcoin runs on Proof of Work (PoW network) where consensus is determined by hashrate. PoW systems demand massive amounts of computational power, which is used to solve a math problem for each block. Cambridge University conducted a research project which estimates miners use more than 120 Terawatt Hours (TWh) per year. If Bitcoin were a country, it would be in the top 30, nearly as much as Norway’s, which uses 130 TWh annually. Unfortunately, a large majority of this power is generated by burning fossil fuels; one study conducted by the University of New Mexico estimates that every dollar of Bitcoin mined causes 49 cents in climate and health damage to the United States alone. It is difficult to fully calculate the impact on our environment caused by Bitcoin miners.
Bitcoin suffers from low transaction processing speeds, commonly caused by transactions per second (TPS) demand rising above Bitcoin’s limit of around 3 TPS. As a result, transactions can take hours or even days to process. Using Proof of Stake (POS) validation, Bitcoin Latinum is capable of more than 10,000 transactions per second.
Bitcoin Latinum’s PoS Algorithm aims to process greater transactions per second than Bitcoin’s, while demanding minimal electricity usage. Instead of having power-hungry computers compete towards block publishing, PoS has validator nodes. To become a validator and contribute to publishing blocks, all that is required is for a user to own Latinum. The Ethereum team has claimed PoS to cut down on electricity use by 99%. Each blockchain validator can be hosted on a computer that uses less electricity than charging a laptop. PoS is also beginner-friendly as you can stake your Latinum in a shared pool where the pool owner does all the setup, making mining accessible to all skill levels.
Bitcoin Latinum takes various technological approaches to address the critical issues that have been discovered with Bitcoin over the past 12 years, such as slow transaction speeds, high transaction fees, high energy usage, hardware and energy centralization, and long block times. With Bitcoin Latinum’s next generation enhancements to the blockchain, LTNM seeks to achieve a more efficient, affordable, and sustainable solution for widespread crypto adoption.