Author: Erik Aronesty 2022-02-20 18:35:15
Published on: 2022-02-20T18:35:15+00:00
The context discusses the potential harm of expanding use-cases for on-chain transactions in Bitcoin. It is noted that Ethereum has high fees for basic transactions due to the affordability of higher fees for certain use-cases. This kind of expansion can harm Bitcoin and potentially lead to a contentious blocksize debate. The argument is supported by the fact that all extensions should be explicit use cases, not generic or implicit layers that can be exploited for unknown and possibly harmful use cases. Timing is also crucial for bitcoin innovation, as evidenced by the impact of lightning on fees. The writer suggests that a lightning-compatible mimblewible+dandelion on-chain soft fork could reduce transaction size, vastly improve privacy, and get more small transactions off-chain. However, it is suggested that this should not be released for another two years. The discussion also touches on the need for compelling use-cases that are clearly beneficial to all users, as opposed to just a small subset. The Drivechains use-case and various new uses for on-chain transactions mentioned as a use-case are argued to harm all existing users, as they compete for scarce blockchain space. Finally, the writer emphasizes the need to carefully weigh the benefits of making core consensus changes to the almost $1 trillion dollar system against the risks and precedent-making that such changes may set.
Updated on: 2023-06-15T04:17:36.152496+00:00