Published on: 2015-05-26T08:29:31+00:00
There is a debate within the Bitcoin community about the block size, with arguments for both smaller and larger block sizes. Some believe that a small block size will make Bitcoin too expensive for individuals to use, while others think that larger blocks will prevent most people from owning even a single utxo. Currently, with a block size of 1 MB, less than 1% of people can own a single Satoshi, leading them to either not use Bitcoin or rely on a substitute lacking the full security guarantees of the main blockchain.One concern for individuals is being able to validate the blockchain. With a pruning node, an individual only needs to download the blockchain once and maintain the utxo set, which requires roughly 30 bytes per utxo. This means that if each person has one utxo, around 210 GB of storage would be needed, which is achievable with today's hardware. Even if each person has ten utxos, it would still be feasible with approximately 2.1 TB of storage.However, the current block size of 1 MB is not suitable for settling transactions on a global scale within a reasonable timescale. To handle trillions of transactions per day, supporting approximately 1 utxo per person per day, we would need block sizes of 10 GB, which is achievable with current hardware. Additionally, using SPV (Simplified Payment Verification) security instead of pruning security would further reduce the cost.As the capacity of Bitcoin grows, fewer individuals would be able to run full nodes, potentially leading them to give up running a full-node wallet. However, if more parts of the network rely on SPV-level security, it may still be possible for individuals collectively to form the majority of the network. This could be facilitated by implementing a scalable DHT-type network of nodes that collectively store and index the extensive transaction history, including unconfirmed transactions.The concern with restricting block capacity to allow individuals to run full nodes is that it could make Bitcoin too expensive for individuals to use. The Lightning Network, for example, would need to consolidate global payments by a factor of 25000:1 to fit into Bitcoin's current capacity as a settlement network. This would make it costly for current holders to sell or spend their Bitcoin.In conclusion, finding a balance between block size and individual participation is crucial for the future of Bitcoin. Implementing scalable SPV-level security and a decentralized network of nodes may enable individuals to collectively maintain the majority of the network, even as the capacity of Bitcoin grows.
Updated on: 2023-08-01T12:44:58.073518+00:00