A Proposed Compromise to the Block Size Limit

Summary:

The conversation between Michael Naber and Adam Back in 2015 discusses the potential of layer2 systems to achieve global consensus using blockchain. They suggest that it is possible to go off-chain without losing trustlessness and security. Michael Naber emphasizes that Bitcoin Core aims to meet the demand for global consensus effectively and efficiently, and off-chain solutions are useful but do not solve the problem as well as Bitcoin does. Adam Back notes that block-size is not a free variable and that half the parameters listed by Michael Naber are in conflict with each other. He suggests improving decentralization and throughput short-term while people work on algorithmic improvements mid-term. Adam Back provides links to proposals, papers on layer 2 such as the lightning network paper and the duplex micropayment channel paper, and development lists and codes. He also notes that probably 99% of Bitcoin transactions already happen off-chain in exchanges, tipping services, hosted wallets, etc.Michael Naber suggests that demand to participate in a low-fee global consensus network will likely continue to rise and technology already exists to meet that rising demand using a blockchain with sufficient block size. He believes that market forces make it almost certain that demand will be met by a blockchain with adequate capacity. Michael Naber emphasizes that Bitcoin Core must remain the lowest-fee, highest-capacity, most secure, distributed, fastest, overall best solution possible to the global consensus problem. He suggests manually increasing the block size limit as demand occurs, except in the special case that increasing the limit would cause an undue burden upon users wishing to validate the integrity of the blockchain. Finally, he proposes a compromise to raise the block size to a static 8MB now with a plan to increase it further should demand necessitate except in the special case mentioned above.

Updated on: 2023-06-10T01:24:28.507227+00:00