Author: Chaofan Li 2018-01-17 07:55:54
Published on: 2018-01-17T07:55:54+00:00
The proposed solution to the scalability issue of blockchain is to split the blockchain into two or more blockchains, which is more of a financial trick than a technical solution. The method involves hard forking the blockchain into two (e.g. blockchain A and B) that are almost the same except for some identifiers to distinguish them. Coins on one blockchain cannot be sent to the other, and everyone gets double bitcoins, each with half the value of an original bitcoin. This theoretically doubles the capacity of the original blockchain. When sending coins, the wallet should randomly select one blockchain and try to send through only one. This solution is inspired by stock splits, where the price halves, but the market capitalization remains the same, and there is no dilution of every shareholder's total assets.While bitcoin emphasizes that the total coin supply should not be changed, the problem with inflation of fiat money is not diluted value of every unit of fiat money caused by total supply increase. The increased supply is not delivered to everyone proportional to their previously owned money and is released through debt expansion. Those who can borrow more money with low-interest ratios invest and get profits, while others' money is diluted. With the voluntary split of bitcoin, dilution of anyone's bitcoin assets won't happen.
Updated on: 2023-05-20T04:46:51.965531+00:00