Published on: 2018-01-22T22:43:22+00:00
The proposal to solve the scalability issue of blockchain involves a voluntary split, where the blockchain is divided into two or more blockchains. Each blockchain has its own coins that cannot be sent to the other blockchain. This solution aims to double the capacity of the original blockchain. When sending coins, the wallet randomly selects one blockchain and sends through only that one.This method is inspired by stock splits, where the price halves but the market capitalization remains the same. It ensures that there is no dilution of anyone's bitcoin assets. The total coin supply should not change, as increasing the supply would dilute the value of each coin. With the voluntary split of bitcoin, this dilution is avoided.There are discussions on what enforces the equal worth of Bitcoin A and Bitcoin B. Chaofan Li argues that if the algorithms of the two chains are the same, except for some identifiers, they should have the same value. The market will adjust their values accordingly. Additionally, the proposal is backward compatible with old version transactions and creates a blocktree as new blocks are added, providing even more capacity.In an email exchange, ZmnSCPxj raises questions about the worth of Bitcoin A and Bitcoin B and whether they can diverge in price. Li believes that voluntary split of bitcoin will prevent the dilution of anyone's bitcoin assets. The proposed solution is seen more as a financial trick than a technical solution to address scalability issues. While bitcoin emphasizes maintaining the total coin supply, this solution prevents dilution of each unit's value, similar to the problem with inflation of fiat money.Overall, the voluntary split of bitcoin presents a potential solution to the scalability issue of blockchain by creating multiple blockchains with their own coins. It aims to double the capacity of the original blockchain without diluting the value of bitcoin assets. The proposal is inspired by stock splits and is considered backward compatible with old version transactions. Discussions continue regarding the worth and potential divergence of Bitcoin A and Bitcoin B.
Updated on: 2023-08-01T22:29:15.104665+00:00