slides and talk by @arjunblj 
@arjunblj A common refrain: "Bitcoin can't scale"
however, this question is not new, it was there since day 0
however, this question is not new, it was there since day 0
@arjunblj Fundamental scaling constraints:
- @Bitcoin's theoretical TPS: 4-7 txns/sec
- @Visa's theoretical TPS: 24,000 txns/sec
question: why can't we just multiply the constants? I.e. increase block size to include more transactions in each "block"
- @Bitcoin's theoretical TPS: 4-7 txns/sec
- @Visa's theoretical TPS: 24,000 txns/sec
question: why can't we just multiply the constants? I.e. increase block size to include more transactions in each "block"
@arjunblj @Bitcoin @Visa When building a network like this, you can optimize at most 2 out of 3:
1. Scalable
2. Decentralized
3. Secure
Bitcoin so far has optimized for 2 & 3.
By doing something "simple" like increasing block size, you increase 1 at the expense of 2 or 3.
1. Scalable
2. Decentralized
3. Secure
Bitcoin so far has optimized for 2 & 3.
By doing something "simple" like increasing block size, you increase 1 at the expense of 2 or 3.
@arjunblj @Bitcoin @Visa Bitcoin's blockchain is already 350GB.
So what is the "right" way to scale Bitcoin?
A: Use Bitcoin as a settlement layer, with "layer 2", sidechains, and bitcoin banks that serve as faster ways to move Bitcoin temporarily.
having these options allow users to choose tradeoffs
So what is the "right" way to scale Bitcoin?
A: Use Bitcoin as a settlement layer, with "layer 2", sidechains, and bitcoin banks that serve as faster ways to move Bitcoin temporarily.
having these options allow users to choose tradeoffs
@arjunblj @Bitcoin @Visa deferred settlement on layer 2 solutions is just like maintaining a tab at a bar
@arjunblj @Bitcoin @Visa Examples of Bitcoin's federated pegs, sidechains, l2, etc.:
@BTC_LN - layer 2 settlement
@Liquid_BTC - federated peg
@WrappedBTC - BTC on Ethereum
these options all help speed up transactions, extend utility, lower cost, etc.
@BTC_LN - layer 2 settlement
@Liquid_BTC - federated peg
@WrappedBTC - BTC on Ethereum
these options all help speed up transactions, extend utility, lower cost, etc.
@arjunblj @Bitcoin @Visa @BTC_LN @Liquid_BTC @WrappedBTC Sure, bitcoin banks may seem counter-intuitive to the original Bitcoin vision, but in reality the idea of banks being the main players in the Bitcoin future is an old idea.
@halfin: "Different banks can have different policies, some more aggressive, some more conservative."
@halfin: "Different banks can have different policies, some more aggressive, some more conservative."
@arjunblj @Bitcoin @Visa @BTC_LN @Liquid_BTC @WrappedBTC @halfin today, ~8% of BTC is held in exchanges
@arjunblj @Bitcoin @Visa @BTC_LN @Liquid_BTC @WrappedBTC @halfin conclusion:
"Bitcoin's settlement assurance can securely scale in layers" - @arjunblj
"Bitcoin's settlement assurance can securely scale in layers" - @arjunblj
@arjunblj @Bitcoin @Visa @BTC_LN @Liquid_BTC @WrappedBTC @halfin Big purchases and big players will use the base layer.
Micro-transactions that need to happen fast and cheap will happen on secondary layers.
Micro-transactions that need to happen fast and cheap will happen on secondary layers.
β’ β’ β’
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