The Rise of PSBTv2: Understanding Who Wants to Use It
There have been several updates to Bitcoin’s underlying protocol in recent years, and one significant change has caught the attention of developers and users: PSBTv2 (BIP370). This backwards-compatible update was first proposed in 2015, but has only recently become known as a viable alternative to the original PSBT standard.
What is BIP174?
Before we delve into PSBTv2, it’s important to understand the context of BIP174. The Bitcoin Improvement Proposal (BIP) series defines the protocol and its APIs, including the Bitcoin Standard Base (SBF). BIP174 is a major update to the SBF standard, introducing new features and improvements that enable more flexible and scalable development.
PSBTv2: Backward Compatible Modification
PSBTv2 is a backward compatible modification of the PSBT standard defined by BIP174. This means that existing applications based on PSBT can continue to function without modifications while benefiting from the new features and improvements of PSBTv2.
Key Benefits of PSBTv2
So, who wants to use PSBTv2? Here are some of the key benefits:
- New Inputs and Outputs: PSBTv2 introduces new features for creating and managing inputs and outputs that can improve the security and efficiency of Bitcoin transactions.
- Improved Scalability: The updated protocol enables more efficient use of computational resources and faster transaction processing times without sacrificing security.
- Improved Security: PSBTv2 also includes additional security features such as improved validation and error handling that can help prevent certain types of attacks.
Who uses or wants to use PSBTv2?
While there is no industry or specific use case for PSBTv2, the following groups may be interested in using the updated protocol:
- Developers
: Developers building new applications on top of Bitcoin can take advantage of the improved scalability and security features introduced in PSBTv2.
- Smart contract platforms: Smart contract platforms such as Truffle Suite or Hyperledger Fabric can be helpful in using PSBTv2 to improve their performance and efficiency.
- Enterprise solutions
: Enterprise solutions that require high-performance processing can benefit from PSBTv2’s improved scalability.
Conclusion
In summary, while PSBTv2 is not yet a widely adopted standard, it is gaining increasing attention among developers and users who value improved security, scalability, and efficiency. As more applications and projects move forward with PSBTv2, we can expect greater adoption and widespread use of the updated protocol in the Bitcoin ecosystem.
