Author: Oliver Egginger 2015-05-13 10:37:17
Published on: 2015-05-13T10:37:17+00:00
In a 2015 email exchange, Jeff Garzik expressed his agreement with the sentiment that seven transactions per second (tps) was too low for Bitcoin. This limitation may be sufficient for interbank trading, but for everyday use, it is not ideal. The issue lies in the cost of leaving a footprint on the blockchain for each transaction and the economic feasibility of such trivial activities. When users encounter block boundaries, they may choose to give up due to the effort required or the lack of economic viability. Consequently, many opt for third-party payment systems instead. However, this third-party economy is rife with dishonesty, making it worse than any used car dealer. Thus, there is a need for a functioning economy around the blockchain, which requires accepting some unpleasant truths. While some companies do an excellent job, they must contend with their unscrupulous competitors. Ultimately, relying on the blockchain to avoid trusting anyone is not sustainable in the long run.
Updated on: 2023-06-09T19:38:17.274578+00:00