What’s your opinion on block size and Bitcoin maximalism?
I’m just starting to understand cryptocurrencies and have recently finished reading “The Bitcoin Standard” by Saifedean Ammous after which I had some questions which I posted on r/BitcoinBeginners.. I recommend reading the book even if you happen to disagree with the author. I myself am still not entirely convinced of his view of Bitcoin being the only alternative to central banking but he definitely makes some really good points and it was a very interesting read to me as large parts of the book offer a description of the history of money, in all its different forms from seashells over rocks to gold and silver..
Anyways, while lacking real knowledge myself I'd be interested to hear your opinions on what Saifedean wrote to the issue of blocksize. He imagined what would happen if bitcoin itself, on the first layer as I understand, would be used for as many transactions as Visa is nowadays. From Chapter 10 of "The Bitcoin Standard":
"For Bitcoin to process the 100 billion transactions that Visa processes, each block would need to be around 800 megabytes, meaning every ten minutes, each Bitcoin node would need to add 800 megabytes of data. In a year, each Bitcoin node would add around 42 terabytes of data, or 42,000 gigabytes, to its blockchain. Such a number is completely outside the realm of possible processing power of commercially available computers now or in the foreseeable future. The average consumer computer, or the average external hard drive, has a capacity in the order of 1 terabyte, about a week's worth of transactions at Visa volumes. For some perspective, it is worth examining the sort of computing infrastructure that Visa employs to process these transactions. In 2013, a report showed that Visa owns a data center described as a "digital Fort Knox" containing 376 servers, 277 switches, 85 routers, and 42 firewalls. Granted, Visa's centralized system is a single point of failure, and so it employs very large amounts of redundancy and spare capacity to protect from unforeseen circumstances, whereas in the case of Bitcoin, the presence of many nodes would make each one of them non-critical, and so requiring less security and capacity. Nonetheless, a node that can add 42 terabytes of data every year would require a very expensive computer and the network bandwidth required to process all of these transactions every day would be an enormous cost that would be clearly unworkably complicated and expensive for a distributed network to maintain."
Excerpt From
The Decentralized Alternative to Central Banking Saifedean Ammous This material may be protected by copyright.
AFAIK Saifedean is a proponent of second layer solutions like lightning to solve that issue as opposed to a hardfork or another coin completely.
Many thanks to u/Rucknium who has been very helpful in making me understand more about how Bitcoin and Monero work and who suggested to make a post regarding this question on here.
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