Isolated witness is the ultimate solution? Bitcoin hard to enhance the 1MB bifurcation block size palliatives

Isolated witness is the ultimate solution? Bitcoin hard to enhance the 1MB bifurcation block size palliatives

A British exit after the referendum, many financial news media have begun to realize that bitcoin is becoming a more and more credible hedge assets. DanielMasters institutional investors think bitcoin is ready to enter the golden period, its market value after a series of growth, is around $10 billion.

 

But with bitcoin prices and investment prospects continue to rise, there is a problem to the center of the network has been shrouded in behind the digital currency, bitcoin scale can solve the facing the pressure?

On the current trajectory, some people do not think so.

The underlying technology bitcoin is block chain technology. The block contains all of the recent bitcoin network trading, these blocks were confirmed once every 10 minutes, and now each block size is limited to 1MB.

The problem is? The average block size is close to the limit, some blocks have already reached the limit, resulting in unnecessary transaction is pushed to the next block. Therefore, it appears the transaction confirmation delay and high transaction costs, which makes many people feel very anxious bitcoin field.

Therefore, how bitcoin expansion has become a circle of the most divisive issues.

Although, BitcoinCore developers have been given a plan, but some people think we need to take more direct measures. The next few months will be to take measures to consolidate, so it is important to explore whether the need for continued success in bitcoin and take a more direct approach.

How should the bitcoin expansion?

Bitcoin preacher dream is this money one day to the end of the world’s sovereign hybrid legal currency, has become the main means of carrying out all transactions.

These are lofty goals, in order to achieve their chance, bitcoin needs first to solve the real technology limited. Although bitcoin is a reliable currency and loose, the fact is bitcoin payment network share in the global trade share is very small.

For example, a Visa network in 2013 during the holidays, the transaction can handle per second peak reached 47000 pen.

The center of the Visa and single payment processors than the bitcoin protocol can only deal with a small amount of transactions per second. Obviously, in order to achieve the goal of aspiring, bitcoin transactions need to enhance the throughput of an order of magnitude. The easiest way is to upgrade the 1MB block size limit current. But this is the worst way.

As the developers JosephPoon and TadgeDryja payment channel white paper wrote in the bitcoin:

“If we each bitcoin trading average of 300 bytes and assume that the block size is infinite, then a second to reach 47000 of Visa transaction capability, so bitcoin need block size is about 8GB. The amount of data will be produced annually by more than 400 terabytes.”

These numbers tell us, simply increase the block size is not as a long-term plan bitcoin expansion.

The backbone structure of any of the upgrade will bitcoin network center caused more pressure: miners and node. No strong distributed network, bitcoin will be more vulnerable to attack and review. In other words, enhance the block size will make a compromise between consensus and performance to the center.

However, bitcoin to the center is still the biggest characteristic, because this feature supports bitcoin inflexibility and anti censorship of. Without these characteristics, bitcoin will only is a tedious and expensive PayPal. So, if bitcoin can expand without sacrificing to the center of the case, then this method is obviously desirable.

This is why we need a long-term expansion of solutions to solve the core problem.

The bitcoin network can not effectively carry out expansion. Therefore, the network operation mode should be optimized. This optimization can be witnessed by isolation (SegWit) method, this method can simplify the transaction and block without increasing the block size to improve the efficiency of the transaction case.

SegWit also laid the foundation for future upgrades, properly and significantly improve the bitcoin transaction throughput.

In addition to other concepts, such as lightning and side chain network, also can improve the bitcoin block size does not change in the situation.

1MB block size limit is not detrimental to bitcoin use?

Although SegWit is currently being tested and is the development and implementation of top protocol, some people eager to insist that the current problem is approaching full block.

The quarrel is roughly: with the block close to its maximum capacity, increase transaction costs, improve transaction time. These problems means that bitcoin adoption is reduced, by means of network and reduce the crumbling bitcoins in dying state. Therefore, we need to improve the hard bifurcation block size to at least 2MB, directly enhance the bitcoin trading capacity, while at the same time, the development of long-term solutions.

But even the lifting block size, a slight increase will bring security risks, the process will be very complicated.

In this case, the only reason is hard to promote the bifurcation unless it can be shown that as the 1MB becomes more crowded, the actually short and medium significantly hinder the bitcoin. Otherwise it will not be hard bifurcation.

The average block residual capacity becomes less means higher fees. If these charges can not be satisfied, will cause the network transaction confirmation time becomes slower.

According to the bitcoin preacher’s point of view, it is very easy to see the damage of bitcoin. Novice consumers for the first time using bitcoin shopping in serious transaction confirmation delay, then the user will probably not be promotion in bitcoin technology, because it is not as advertised, the damage of bitcoin.

These are the relatively small size of the transaction, so it will be affected by the block reduced capacity. The problem is that the large extent is not realistic.

Bitcoin to let every consumer can easily get through the mobile phone, and ApplePay or Venmo as an important payment option, there is still a long way to go. In fact, bitcoin performance in these cases on the very bad. The reason is very simple, that is: price volatility.

In the daily life and expenditure, normal consumers will not give up the use of more stable and accepted currency, and to choose a price volatility in currency.

The mainstream media are aware that bitcoin’s current growth comes mainly from no doubt as a tool of investment and speculation. These types of transactions are often larger than the retail value.

This and the Tradeblock digital corresponding figures show that between May 27th and June 25th, the average daily trading volume of bitcoin is 12 to 14BTC, far greater than any possible bitcoin retail transactions.

In this regard, bitcoin does not need to beat the instant credit card transactions and stable purchasing power. It only needs to beat the traditional bank transfer and transfer, and compared the performance of assets.

With bitcoin has become a most sought after commodity investment, its market value will rise. The price fluctuation should be reduced, will make it more suitable for ordinary consumers.

At this time, reliable, rapid and cheap small transactions will become more important for growth. But this does not appear in the next few months. Even in the lightning was the successful deployment of the network will not appear.

This is because to break the rule of legal tender is a long process. The real bitcoin will wait long time preacher.

Those who believe that the capacity decrease of blocks in the short term will damage or even kill bitcoin the preacher is the Overgeneralization. They want to see bitcoin has become popular, but mistakenly believe that the first stage of bitcoin depends on the growth of large-scale use.

In fact, the instant bitcoin throughput is not a problem, large-scale use of bitcoin is still a long process. The public does not promote the growth of bitcoin. Investors and speculators will bear an important responsibility for the growth of bitcoin.

The block size increase will eventually come, but it will contribute to the expansion of the very small. Hard fork does not bring any thing, in addition to the development of fantasy and BitcoinCore developers to bring more trouble.

Block chain expansion is not an easy problem, only through the slow, steady and creative ways to solve.

There is no reason and evidence, continue to use the 1MB block size will be used immediately to hinder bitcoin.

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