Author: Thomas Zander 2015-08-11 06:31:11
Published on: 2015-08-11T06:31:11+00:00
In an email on August 10, 2015, developer Mark Friedenbach suggested that bigger blocks were necessary in response to the development and testing of Lightning Network. Specifically, he suggested a range of 8 MB to 8 GB, but emphasized the need for reasoned analysis and data to support any new limit or growth trajectory. The current use of Bitcoin is small, with only about 0.007% of the world population using it to send perhaps one transaction per month. However, there are indications that more people are considering using Bitcoin as a savings alternative, particularly in countries where currencies are unstable and show early signs of hyperinflation. If even a small percentage of these people turned to Bitcoin, the number of users could jump from half a million to 10 million in just a few months. This would have a significant impact on transaction rates, which could rise dramatically. It is difficult to predict how many people will adopt Bitcoin, but history has shown that rises in price often follow economic instability, such as Cyprus's bailout or Greece's economic difficulties. While a larger number of people holding Bitcoin as a savings alternative may not significantly increase transaction rates, people in countries such as Poland, Ireland, and Greece are already returning to barter. Bitcoin is likely to be seen as an alternative that cannot be ignored, leading to increased transaction rates. Friedenbach argued that increasing the maximum block size to 8 MB was not unreasonable, given that a 20-fold increase is common in a company that is six years old (such as Android). Additionally, 3 TB hard drives can easily accommodate 8 MB blocks, and broadband capabilities in relevant countries can handle the necessary bandwidth. Friedenbach recommended focusing research on optimization techniques, predicting a 2-magnitude speedup within six months. He also noted that exponential growth in the blockchain space is expected, with agressive timelines and substantial growth being commonplace for startups building on existing technologies. Even with Lightning Network, sidechains, or other developments, Bitcoin will continue to be used, and scarcity will still be a factor. However, it is important to note that an 8 GB block size limit still would not support VISA or Mastercard.
Updated on: 2023-06-10T18:27:44.246597+00:00