Author: Chaofan Li 2018-01-22 18:46:06
Published on: 2018-01-22T18:46:06+00:00
The proposal suggests a simple solution to solve the scalability issue of blockchain. The technical part is straightforward: split (hard fork) the blockchain into two or more blockchains voluntarily. The two blockchains are identical, except for some identifiers that distinguish the two blockchains, and the coins on one blockchain cannot be sent to the other one or interfered by the other blockchain. Everyone who holds bitcoin will receive double bitcoins. Each bitcoin has half the value of the original one. Then, two almost identical blockchains are created, theoretically doubling the capacity of the original blockchain. When sending coins, the wallet should randomly select one blockchain and try to send only through one blockchain if there are enough bitcoins.The proposed method is inspired by the stock split, where when a stock share is split, for example, into two shares, the price halves, but the market capitalization remains the same. There is no dilution of each shareholder's total assets. The bitcoin often emphasizes that the total coin supply should not be changed. If the total supply increases, the value of a single coin will be diluted. However, with voluntary split of bitcoin, dilution of anyone's bitcoin assets won't happen.ZmnSCPxj raised a question about what enforces that bitcoin A is worth the same as bitcoin B? Or are they allowed to eventually diverge in price? If they diverge in price, how is that different from the current situation with Bitcoin, BCash, Bitcoin Gold, Bitcoin Hardfork-of-the-week, and so on?However, Chaofan Li believes that if the two chains’ algorithms are the same, except for some identifiers (e.g., btc.0 btc.1), they have no reason to have different value. If so, the market will adjust the value. Also, the total supply can be the same. The amount in blockchains is just some numbers. The wallet can display the correct amount according to the identifiers. The voluntary split is also backward compatible with old version transactions, and they can be treated as tx for both chains and included in both chains later. For new version Tx after fork, some identifiers must be added, to mark the tx is for that chain only. The miners need to choose one chain to mine. After several voluntary splits, the Blockchain basically becomes a blocktree, and new blocks are added to the leaves (e.g., btc.00 btc.01 btc.10 btc.11), providing even more capacity.
Updated on: 2023-06-12T23:53:15.543018+00:00