Until the advent of long-range electric power distribution via the use of high voltage transformers and efficient power lines, electric lighting was the privilege of the rich and dense urban areas.
Settling many smaller transactions over a single larger one is exactly analogous to using high voltage transformers to supply many small devices with electric power over long distances.
Fewer electrons must travel over the wire - but they each carry more energy individually. This means less friction, lower resistance, less heat dissipation.
High cost of validating transactions is exactly analogous to heat dissipation in conductors that carry high currents.
High cost of validating transactions is exactly analogous to heat dissipation in conductors that carry high currents.
I don't care what the naysayers say - this is just scientific fact...and those who appreciate this vision will be vindicated one day.
Ohm's law states resistance = voltage / current. R = V / I
And power is the product of voltage and current. P = V * I
And power is the product of voltage and current. P = V * I
Therefore, to maintain the same power (amount of work that can be done over unit of time, somewhat analogous to velocity of money) while minimizing resistance requires us to raise the voltage and lower the current by the same factor, which is exactly what AC transformers do.
High voltage is analogous to high value transactions.
High current is analogous to many transactions.
To move the same amount of money we can either:
1) use a small number of high value transactions
or
2) use a larger number of smaller value transactions.
High current is analogous to many transactions.
To move the same amount of money we can either:
1) use a small number of high value transactions
or
2) use a larger number of smaller value transactions.
1) is the situation with high voltage, low current power lines (low resistance, low heat loss, low fees)
2) is the situation with low voltage, high current power lines (high resistance, high heat loss, high fees)
2) is the situation with low voltage, high current power lines (high resistance, high heat loss, high fees)
The size of blocks or thickness of data pipes does not change this calculation. Bigger blocks and thicker data pipes just externalize these costs onto the entire network.
And what's worse is that the costs do not scale linearly - they scale worse than that with the current blockchain designs and flood networks. Doubling the transactions per second will more than double the externalized costs on the network.
Therefore, the *only* sensible approach to true scale is to only handle a small number of high value transactions on the global network and use "transformers" to collect many smaller value transactions into a few larger value ones.
To deny this is to deny science - I don't care what your business model is.
