Blockchain Scalability, RSI, Hot wallet

Title: The future of Cryptors

Introduction

The world of cryptocurrency has recorded enormous growth in recent years, with Bitcoin leading the package as a popular digital resource. However, one of the main concerns about investors and users is scalability: the ability to process transactions efficiently in different networks without compromising safety. In this article, we will deepen two crucial aspects that are essential to optimize scalability: RSI (relative resistance index) and hot wallets.

The importance of scalability in cryptocurrency

Scalability refers to the ability of a cryptocurrency to manage a high volume of transactions per second. The current dimensions of the block in most of the blockchain networks, such as Bitcoin (1 MB), Ethereum (1 MB) and Litecoin (4 MB), can bring slow transactions to processing times, which makes it difficult for users to perform excellent transactions or participate in the market.

Relative force index (RSI) – A technical indicator

RSI is a popular technical analysis tool used to measure the resistance of actions. Measures the extent of the recent variations in prices and the conditions of over stairs when comparing the closing prices with their 50 -day mobile averages. When the RSI falls below 30 years, it is considered oversize, indicating that the market may be due to a rebound.

In cryptocurrency, the RSI can be applied to blockchain networks to detect possible problems with scalability. When monitoring RSI over time, developers and investors can identify areas of concern and optimize their solutions accordingly. For example, if the RSI constantly drops below 30, it may indicate that there are underlying problems relating to the capacity of the network or the volume of the transactions.

Hot wallets: a key component for safe storage

A hot wallet is a digital storage solution used to archive cryptocurrencies and other resources safe. The hot wallets allow users to immediately access their funds, without the need to wait for the transactions to be confirmed in the block chain. However, traditional hot wallets often present significant risks for safety, including phishing attacks, piracy attempts and loss of private keys.

Optimization of the hot portfolio

To mitigate these risks, the developers are exploring alternative solutions that give priority to the safe archive and the development of efficient transactions. Some of the key features that make hot wallets scalable include:

• Support to multiple chains : allow users to store their cryptocurrencies in multiple blockchain networks, allowing them to immediately access the funds, regardless of the capacity of the network.

• Decentralized storage : use of decentralized storage solutions such as the interplanetary file system (IPFS) or the swarm, which can provide the fastest and confident data storage that the traditional hot wallets.

• Integration of the intelligent contract : integration of intelligent contracts into hot wallets to automate transactions and improve scalability.

Example of use case: optimization of the hot portfolio for scalability

Take into consideration an example in which a user wants to archive his Ethereum (ETH) balance in a safe way through multiple blockchain networks, including Bitcoin (BTC), Litecoin (LTC) and Cardano (Ada). Using RSI and hot wallets, we can optimize the solution as follows:

• RSI

  

  monitoring: monitor the RSI over time to identify possible bottlenecks in the network capacity.

• Integration of the hot portfolio : integrate Ethereum’s intelligent contracts into a decentralized portfolio as swarm or interplanetary file system (IPFS) to provide access to ETH funds without problems.

• Support to multiple chains : use more hot wallets with different blockchains, ensuring that ETH is always accessible in all networks.