Author: Venzen Khaosan 2015-07-30 09:16:24
Published on: 2015-07-30T09:16:24+00:00
The email thread between Adam Back, Venzen Khaosan, and Raystonn discusses the possibility of Bitcoin competing with other blockchains, and the importance of security and decentralization in maintaining its value. Adam argues that a PoW-blockchain is difficult to replicate due to its high level of security and the lack of expertise required to maintain it. He believes that Bitcoin can compete with itself via different parameters or Layer 2 protocols such as Lightning. He further adds that any chain that tries to go to extreme parameters would face the same decentralization problems as Bitcoin. Raystonn argues that economic policy will be the distinguishing factor for alternative blockchains since every feature that adds value will quickly be absorbed into competing alternative blockchains. He also believes that cheaper fees are essential to attract users towards Bitcoin, but this could cause pressure on fees. In response, Adam states that the limits to block sizes are technical and relate to decentralization and security. He advises against making assumptions about having better insights than the entire technical community and recommends testing theories on #bitcoin IRC channel before discussing them on the list. Venzen Khaosan questions Raystonn's statement about "liquidity moves to the location of least friction" and asks for a reference to the modern economic study. He argues that people are willing to pay higher fees and wait longer for transactions to execute because of Bitcoin's powerful features. The email thread highlights the importance of security and decentralization in maintaining Bitcoin's value, and how Layer 2 protocols such as Lightning can help it compete with itself.
Updated on: 2023-06-10T04:17:35.804005+00:00