Institutional Networks: Preparing for Bitcoin Integration

Six months have passed since the launch of Bitcoin ETF, and the results have exceeded all expectations. This financial instrument became the most successful in the history of ETFs, generating volume of $309.53 billion. On the first day of trading, Bitcoin spot ETFs attracted $4 billion, which significantly exceeded the previous record of the Gold ETF (GLD), which took three days to achieve $1 billion in inflows . This rapid adoption of Bitcoin demonstrates its potential as a new asset to meet the demands of the digital age.

BlackRock's head of thematic and active ETFs, Jay Jacobs, emphasized that Bitcoin can serve as protection against geopolitical and monetary risks. Unlike gold, Bitcoin has a digital nature and a limited supply, which makes it more attractive to investors in the face of central bank intervention in the money supply and inflation risks.

To ensure continued growth and adaptation to institutional needs, the Bitcoin network must continue to scale and improve.

The Bitcoin network processes about 412 thousand transactions per day, almost double what it did two years ago. However, the median transaction fee rarely exceeds $5. Institutional networks must be prepared to handle increased load and ensure stability by working on scalable solutions such as IBM Blockchain and Visa's Universal Payment Channel (UPC).

To support scalable blockchain solutions, reliable servers and a stable Internet connection are required. Companies like Canton Network offer decentralized infrastructure that provides high levels of reliability and performance. On-premise solutions and from ISPs such as Amazon Web Services (AWS) help ensure uptime and load balancing.

Managing packet loss and jitter in a network is an important aspect to ensure reliability. Transmission Control Protocols (TCP) and networks such as the Bitcoin Relay Network use various techniques to minimize data loss and ensure stability.

Bitcoin's energy consumption is often compared to the energy consumption of entire countries. More than 50% of the Bitcoin network gets its energy from renewable sources such as hydro, wind, solar and nuclear power. The Electric Reliability Council of Texas (ERCOT) recommends integrating Bitcoin mining into the grid to improve grid stability. Companies like Bitdeer and Riot Platforms are already working with ERCOT to stabilize the network during peak loads.

Institutional integration of Bitcoin requires significant efforts to improve the infrastructure and ensure the sustainability of the network. The success of the Bitcoin ETF and support from major financial institutions such as BlackRock demonstrate the significant potential of Bitcoin as a new digital asset. The implementation of scalable solutions, reliable servers, sustainable energy sources and a stable Internet connection will help ensure the further growth and development of the cryptocurrency industry.