By halving Bitcoin every four years, the Bitcoin protocol lowers the amount of new Bitcoin by 50%. For BTC miners, this means a 50% drop in earnings, and it has ramifications for cross-chain interoperability. Every four years, BTC halving events lower block rewards for Bitcoin miners. The secretive creator of Bitcoin, Satoshi Nakamoto, hardcoded the halving process and the limited amount of 21 million BTC into the protocol.
The previous three halves took place in 2020, 2016, and 2012. The incentive for mining a block was lowered from 50 to 25 BTC after the initial BTC halving in 2012. The impact of the upcoming BTC halving is anticipated to happen in April 2024. There will be more half cycles until 2140 when the final BTC will be mined.
Bitcoin Hailed As A Titan With Unraveled Market Domination
The capacity for data and value to be effortlessly shared between several blockchain networks is known as cross-chain interoperability. It promotes blockchain convergence with a more unified and effective financial ecosystem by enabling users and assets to travel freely.
Within the cryptocurrency space, it is hailed for its influence on value and scarcity and is a titan with unrivaled market domination. However, the BTC blockchain is not included in debates on cross-chain synergy due to its proof-of-work (PoW) process and intrinsic design as a very non-interoperable chain. Because of its popularity and market domination, BTC is still important to take into account when talking about interoperability. Events involving half of it set off a series of events that impact transaction costs and network congestion.
