Author: Tamas Blummer 2014-04-10 09:39:07
Published on: 2014-04-10T09:39:07+00:00
The writer suggests that machine to machine micro payments could become the killer application for Bitcoin. However, there are practical consequences to this idea. Firstly, to pay a node for serving, one needs to have bitcoins which can only be obtained by syncing with the network via a node, creating a catch 22 situation. Secondly, if some nodes choose to charge while others don't, smart wallets will always use the free nodes leading to overloading and collapse of free nodes. Thirdly, payment channel implementations today are limited and a lot of work is required to create more. The writer suggests that the lowest hanging fruit is basic, boring optimizations rather than architectural rethinks.
Updated on: 2023-06-08T19:13:28.323982+00:00