Author: Akiva Lichtner 2016-06-21 15:31:01
Published on: 2016-06-21T15:31:01+00:00
The writer suggests a way to scale electronic cash by partitioning Bitcoin addresses based on geographic location. This would enable the users to give up non-locality and help in making Bitcoin scalable. The writer explains that the partitioning scheme can be hierarchical, with partitions at the city, state, and country level. The problem arises when an address in partition A wants to pay an address in partition B which should be done by processing the transaction in partition A first and then including a hash of that block in some block in partition B. The transactions verification benefits from this as smaller merchants can accept payments from local addresses only while larger merchants can verify transactions across two or more partitions. However, some may be concerned about 51% attacks on partitions, but nodes could process transactions at random to balance computing power across all partitions. Overall, the writer believes that the user has to give up something for electronic cash to scale, and non-locality should be that thing.
Updated on: 2023-06-11T18:50:54.505441+00:00