Author: Eric Lombrozo 2015-07-23 19:14:50
Published on: 2015-07-23T19:14:50+00:00
Jameson Lopp argues that larger block sizes do not scale the network but increase the load the network can bear. However, the cost of bearing this load must be paid for and the computational resources are finite, subject to economic issues as any other finite resource. The security model of the network will be significantly at risk if the incentive model collapses. Although larger blocks support more transactions, they also incur overhead in bandwidth, CPU, and space that must be paid. Miners tend to cut corners on these costs and push them onto others due to skewed incentives. On the flip side, the scalability proposals will still require larger blocks to support mainstream usage. Mainstream usage will be enabled primarily by direct party-to-party contract negotiation with the blockchain used primarily as a dispute resolution mechanism. The block size is about supply and demand of finite resources rather than scaling. As demand for block space increases, it can be addressed either by increasing computational resources or by increasing fees. But to do the former, there needs to be a way to offset the increase in cost by making sure that those who contribute said resources have an incentive to do so.
Updated on: 2023-06-10T03:15:46.429391+00:00