Author: Will Madden 2015-08-20 14:40:50
Published on: 2015-08-20T14:40:50+00:00
The argument surrounding the block size limit in Bitcoin has been ongoing. The belief that constraining block size will increase transaction fees to guarantee cheap transactions is based on a misconception of how Bitcoin's economics work. Keeping transaction volumes capped at around 2.3 transactions/second limits the number of new people who can use Bitcoin, which reduces its value. Layer protocols are not yet ready for mainstream, stable use, so it is essential to keep full nodes within reach of hobbyists. Removing the cap entirely is also not a good idea. With an 8MB cap on the block size, we can expect 40% annual average growth, which is a good guess for five years. This will make the cost of running a node lower gradually and reduce the risk of centralization. Lightning, while well thought through, still has some issues that need to be solved. Waiting for layers over Bitcoin to solve the bottleneck is not practical or pragmatic. The solution is to raise the cap to 8MB and permit an average growth of 40% annually. The focus should be on solving real problems such as privacy and mining centralization.
Updated on: 2023-06-10T18:28:08.394763+00:00