Thread by @WesleyBKress

1/ I bought more $SAITO The breakthrough in $SAITO is more significant than #BTC Reason is simple #BTC is a volunteer network that will never be able to scale commercial sized networks as volunteer🌐turns to a closed point at scale @dlancashi 🧠 I will give an analogy & insight💡

2/ of Trust. Volunteer networks are great at smaller scale but moment U try to scale ⬆️, it’s the same as scaling trust from a family to community, to a city, to a state, to a region, to a country, to a continent. U might trust your brother (family) to come use your computer 💻

3/ In your home, maybe even some of your community (neighbors) to use your computer 💻 the issue is that if U allow them to use it for FREE, they can even use it to make money (similar to Mining ⛏ or hashing on the #BTC network) & BUT computer needs to be paid into to maintain

4/ it’s working capacity, otherwise overtime it would cease to exist. This example demonstrates what is known as the “FREE RIDER” problem. This is what Stakers & Miners do in POS & POW & In fact these “People” are the same people that can come & use your “computer” for FREE with

5/ NO incentive to maintain the NODES (ISP & all functions of the network) 💻so essentially the network will always breakdown in terms of collective action. It’s the same reason that you WOULDN’T scale Trust to allow your City, or State or Country to use your computer for FREE to

6/ Make Money on your 💻but never pay for Computer? Right if you scaled this you know you could never count on some people to Pay for the computer. Everyone would act on their best interest to MAXIMIZE Their profits but MINIMIZE their expenses & at best destroys coordinating cost

7/ As there is no way to determine who would FREE RIDE entirely not pay for Full nodes (Your computer), Scaling increases this problem as more & MORE people it would essentially cause you to CLOSE off your Home 🏡 for ANYONE to come use the computer without Paying, this is an

8/ Example of CLOSING OFF OPENNESS of the Network, in this case your Home is the network. You do this as U must Profit as you can’t depend people to all cooperate to pay their equal share of maintaining the computer, this is GAME THEORY. This is what @dlancashi & @richard_parris

9/ Economics is the study of Trade-Offs & the first principle of how people make DECISIONS about Trade-Offs, you could say that Trade-Offs are the OUTPUT & Incentives are the INPUT. So the most important elements that a Blockchain must get to Scale to ANY LIMIT (Data Intensive)

10/ Is ability to correct incentive Layer. As of now ALL POS & POW networks incentivize (Miners & Stakers) similar to the same people able to come in your HOME & use your Computer (POS & POW) to make 💰at small scale it works but due to needing to pay for ISP’s & others network

11/ Costs, the Collective action breaks down in the same way the Collective action broke down as you scaled from your family, city, state, country etc. there were too many people that wanted to make money on the network (Your computer) without Paying for the Computer “FULL NODE”

12/ This would continue to breakdown as it scaled because you would have more & more people using Your Computer for Free to make money (meaning that eventually it would force you to control the entry into the network (Your home), in this case the network collective action breaks

13/ down. Essentially the people who continued to extract more & more profit from your home computer for FREE (maximize usage & pay ZERO to maintain the computer) would MONOPOLIZE it. Same with #BTC Miners overtime Monopolize the control of the network. It’s interesting because

14/ Most in Blockchain would never believe you could Scale Socialism but essentially that is what we are believing by thinking that POS & POW can scale, while remaining Open & Self Sufficient. Let me elaborate on the Self Sufficiency. This characteristic along with openness is Y

15/ #BTC was such a powerful breakthrough in terms of Social Scalability. Satoshi had created economic incentives such as Mining to maintain a VOLUNTEER network, which similar to U scaling your computer 💻 usage in a volunteer manner to say your family or some community members

16/ would continue to coordinate in an effectively to cover costs of the network (computer) SELF SUFFICIENCY breaks down as Scale ⬆️ due to broken Incentives (Free Riders - Miners & Stakers) & Game theory tells us that in fact Free Riders ⬆️. More people would maximize their

17/ Profit overtime & Monopolize 🌐This is why #BTC has had multiple forks, this is why @infura_io currently is the monopolistic network layer level of $ETH they own 80% of the TX flow that comes into the network. They are unprofitable currently & of course they can’t maintain

18/ this long term. This issue is compounded by convenience which is the number 1 determinant of human behavior. In the mining & staking (POW & POS) we currently incentivize for socializing the other COSTS of the network layer (Nodes, ISP’s) etc

19/ This results in Tragedy of Commons due to the fact that what makes #BTC Special is that it’s a PUBLIC UTILITY but we know that the blockchain by nature becomes larger & larger overtime (ledger ⬆️). This makes it more & more expensive as U would need to get a larger & larger

20/ Hard Drive to support the ever growing usage of the Hard Drive (Memory ⬆️). Leading to coordination problems & a breakdown in game theory as who is going to pay for increases need for a BIGGER HARD DRIVE? This is Y people talk about Lite Nodes & why #BTC has forked multiple

21/ Times. These problems as U can see are in fact NOT technical problems as much as incentive problems in the same way that if you wanted to scale your Computer usage in your Home, you would want to ensure that the Network incentivized (People coming into use your computer) must

22/ Pay into a mechanism in which included the payment for maintenance 👨‍🔧 & upgrades to the Computer, to increase in hard drive size to maintain & economically ensure that this cost would be known & could be market driven NOT technically driven. Today All blockchains maintain

23/ Blockchain (Block size) by a Determining this via a Fixed determination to control the size of the Ledger as it continues to increase overtime. So $SAITO is the first blockchain that knows how to derive Market driven prices rather than a fixed cost which simply will become

24/ a point of contention down the road, due to the fact the Network pays (incentivizing) for Mining & Staking but NOT for the Nodes to maintain the network. $SAITO uses a circular ledger & ATR (Automatic Transaction Rebroadcasting) as a way of ensuring in a dynamic fashion true

25/ allowing Market forces optimize for this, otherwise U will always have governance issues (Monetary Policy & Trying to Fix OUTPUTS (Technical) VS INPUTS (Incentives) & fighting down the road due to design. Ask $ETH if they R having issues with their miners & @infura_io #Crypto