Author: Chris Priest 2016-08-06 14:15:22
Published on: 2016-08-06T14:15:22+00:00
The current limit on block size in Bitcoin is denominated in bytes, which means that miners choose transactions to add to a block based on fee/byte ratio. This can create issues for transactions with many inputs as they become larger and require higher fees to be included in a block. However, proposals to change this have been met with resistance. One proposal, BIP131, suggested using a “Wildcard inputs” system that would incentivize microtransactions and decrease the UTXO set. While this proposal was rejected due to concerns about scalability, another idea has emerged: changing the blocksize limit to a block output limit. Under this system, miners would choose transactions based on maximum fee per output. This would essentially make it free to include an input to a transaction. Additionally, this change could incentivize microtransactions and decrease the UTXO set, which would address the “UTXO bloat problem.” The proposed block output limit should be set to roughly the amount of outputs found in 1MB blocks today to minimize controversy. While some people believe that keeping usage restricted is a good thing, the proposed change could bring about data that could be used to determine how to scale Bitcoin in the future. It would also allow for testing of larger blocks on the actual live network. However, there are still those who oppose the change.
Updated on: 2023-06-11T19:22:11.322636+00:00