The Great Bitcoin Scaling Debate — A Timeline

4


if (blocknumber > 115000)
maxblocksize = largerlimit
 
Greg had his own problems with whole-network upgrades.
Ask a simple question… * Gavin Andresen
This is a conversation with Matt Corallo (Bitcoin Core contributor) that started on twitter and migrated into email…
gavinandresen.ninja
 
 

2015–08–25

via
Paper by Kyle Croman, Christian Decker, Ittay Eyal, Adem Efe Gencer, Ari Juels, Ahmed Kosba, Andrew, Prateek Saxena, Elaine Shi, Emin Gün Sirer, Dawn, and Roger Wattenhofer Published in Financial Cryptography and Data Security
via Segwit.party
 
 

https://steemit.com/bitcoin/@adambalm/the-truth-about-who-is-behind-blockstream-and-segwit-as-the-saying-goes-follow-the-money

 
The Upcoming Bitcoin Cash Hard Fork is Great News for Almost Everyone
You may not be aware, but Bitcoin is forking on August 1st with the UAHF “Bitcoin Cash”.
medium.com
New Network Magic · Issue #99 · btc1/bitcoin
btc1 really should add some code to more clearly prevent nodes from connecting to other networks, making sure…
github.com
 

First Era: Satoshi’s Free Offer (2009–2014)

Second Era: Satoshi’s Subsidy (We Are Here)

Third Era: Self Sufficiency (2028? onwards)

The Three Economic Eras of Bitcoin
The way the bitcoin ecosystem will play out is written in the mathematics of its consensus rules; we should all know…
medium.com

Coming to a Conclusion

I can’t claim to know whether Bitcoin will ever get larger block sizes through a hard fork, but inaction will lead to the following problems:

  1. Merchants and platforms will increasingly adopt and accept currencies with lower fees. Bitcoin Cash, Monero, Zcash, Dash and Litecoin are all fulfilling the role Bitcoin excelled at when the block size limit was not being hit. Projects like RaiblocksHashgraph, and MaidSafe are making the whole idea of limits, and the ecological of impact of hashpower ridiculous. Bitcoin Cash is especially easy for merchants to drop in to replace Bitcoin because implementation is easy, and adoption will accelerate as transaction space remains limited.
  2. Periods of high transaction volume or price decline will exacerbate the daily transaction rate limit. Price decline combined with growing transaction backlogs will reduce the mining reward and encourage miners to switch to another SHA256-compatible chain such as Bitcoin Cash. A situation some have called a ‘Chain Death Spiral’ looms in this situation. TrippySalmon runs a great site to monitor the self-interest calculations miners must make called Fork.lol.
  3. The current solution for low, or fee-free transactions is the Lightning network, which itself depends on on-chain transaction to ‘enter a channel’. If everyone adopts that network instantly and the system works as advertised, people will be sending around lightning transactions, and rarely touching the Bitcoin network, only occasionally ‘settling’. Will this be Bitcoin? The number of merchants accepting Bitcoin decreases each day, while other cryptocurrencies which validate the state of the network through normal mining are cheaper and normal people can use. Unless Bitcoin receives a Block size increase, the fees for this onramp will be too high, and processors like Coinbase will lead the way in microtransactions in the Bitcoin network by encouraging commerce between user wallets for no fee.