Author: Jared Lee Richardson 2017-03-31 05:28:33
Published on: 2017-03-31T05:28:33+00:00
Node operation is a crucial aspect of determining which cryptocurrency one can accept. Users who do not run nodes cannot independently determine the currency they are receiving. However, running an SPV (Simplified Payment Verification) does not necessarily mean that users will receive other cryptocurrencies instead of Bitcoin.The block size debate centers around nodes constraining adoption in favor of debatable security concerns or paying more to allow greater growth and adoption. Nodes define which network they want to follow, but without a node, users do not even get to decide which segment they are on.Bitcoin's value comes from its ability to remove limitations of other systems and still provide the ability to do transactions. Higher demand for Bitcoin leads to higher exchange rates, and the ability to run a node and validate rules gives confidence in the currency. Block size increases are necessary to accommodate usage increases, but increasing it also introduces limitations that Visa and Cash have. Some believe that Bitcoin's primary proposition is removing limitations of Cash/Visa, and increasing the block size may risk destroying this proposition.There are solutions like Segwit, Lightning, and pre-loaded wallets like Coinbase, but they have their own limitations. While gold doesn't need utility, Bitcoin was designed to break the limitations of other systems and still provide the ability to do transactions. Failure to solve problems ourselves may lead to Ethereum solving Bitcoin's problems.The discussion revolves around the importance of home users running their own full nodes to maintain monetary sovereignty in Bitcoin. Node users have the power to decide what a Bitcoin is and protect the user from any changes to Bitcoin's rules. This power is what gives Bitcoin most of its value, making it uncensorable, upholding the 21 million limit, and making transactions irreversible.The debate around block size is considered a total waste of time as even if there were a fork to 2MB, 5MB, or 10MB, transaction capacity would still be too low for global usage in the medium-long term. Lightning potentially offers a couple of orders of magnitude of scaling and will make block size a non-issue for years to come.Pre-loaded wallets like Coinbase and solutions like Segwit and Lightning are all ways to solve the problem of increasing transaction fees while maintaining monetary sovereignty.
Updated on: 2023-06-11T22:42:38.456590+00:00