Author: mbtc-dev at xe0.me 2017-02-06 16:24:10
Published on: 2017-02-06T16:24:10+00:00
The email from Luke Dashjr via Bitcoin-dev argues that for Bitcoin to function, a supermajority of economic activity needs to be verified using full nodes operated by the recipient. However, evidence suggests that at best 10% of economic activity is in fact using a full node to verify the transaction. Therefore, there is a need to change the status quo and efforts to do so without dropping the block size have proven ineffective. However, reducing the block size doesn't increase the number of people capable of running full nodes nor add any incentive for people already in that "capable" set to run and transact via a full node. It's because there is no economic advantage to running a full node, which means there's no inherent motivation for implementation or purchase of full nodes by non-technical individuals. The author argues that if Bitcoin ends up being used only by medium and large businesses and technically inclined individuals, then it may lose relevance. On the other hand, a scenario where an average person walks into a big box electronics store in any developed country and buys a "personal digital bank" appliance can reverse centralization trends.However, any solution will need to recognize the fact that the majority of people on the planet are not technically savvy, and they'll need a reason to buy it. Any solution will also need to recognize the fact that it will cost resources (time and money) to run a full node. Furthermore, the higher the balance, the more of a target you become, and the more time/money you have to spend mitigating risk. This is a huge centralizing force that no one really seems to talk about.At the end of the day, the author concludes that if tools are built to enable flexible usage of full nodes (i.e., phone, tablet, or desktop app interfaces with the full node), then there's a large potential for increased usage of full nodes.
Updated on: 2023-06-11T21:15:51.445480+00:00