Wednesday, January 27, 2021
  • Contact Us
  • Privacy Policy
FIND CRYPTO NEWS
Advertisement
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
No Result
View All Result
Home Analysis

Bitcoin’s Block Size Debate Has 2 Failure Modes, Critics Say

May 21, 2020
in Analysis
4 min read
Bitcoin’s Block Size Debate Has 2 Failure Modes, Critics Say
585
SHARES
3.2k
VIEWS
Share on FacebookShare on Twitter

You might also like

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High

DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion

Ethereum Outpacing Bitcoin, Ratio At Two-Year High

Extremely small or extremely large block sizes may cause similar centralization problems.


Key Takeaways

  • Bitcoin’s ideal block size is still being discussed by critics.
  • Small or large block sizes could cause centralization.
  • There are no expected changes to block sizes in the near future.

Share this article

Two cryptocurrency critics have weighed in on Bitcoin’s ongoing block size debate, arguing that a middle ground is best. Anywhere outside this middle ground and Bitcoin risks undue centralization.

Hasu’s Flowchart

Hasu, a cryptocurrency researcher at Uncommon Core, summarized the debate with a simple flowchart:

The blocksize debate in a nutshell: pic.twitter.com/aEh7BuCaGD

— Hasu (@hasufl) May 20, 2020

On one hand, if block sizes are too small, users may need to pay higher fees for their transactions to be included in a block—or they may need to wait longer for their transactions to be confirmed.

SIMETRI Winning in Crypto

On the other hand, if block sizes are too large, that could cause troubles for miners, who would need to provide more disk space and more network bandwidth in order to power the network.

In either case, unwieldy sizes could cause users to turn to third parties such as Coinbase or BitPay to handle their transactions—giving a few large companies centralized control over Bitcoin.

“The Bitcoin Bathtub”

Zooko Wilcox, the CEO of Zcash, noted that this flowchart is similar to another diagram proposed circa 2015 by Tadge Dryja, a lead researcher at MIT’s Digital Currency Initiative:

Under this view, extremely small blocks would require Bitcoin to carry out very few transactions. For example, 1 KB blocks might only allow 100 transactions per day. That would, in turn, require just a few large companies to handle transactions on behalf of users.

With large block sizes, only a few large institutions would have sufficient computer resources to verify transactions. Once again, those institutions would control Bitcoin.

Earn smarter with Cred
Simetri Ad

Dryja originally noted that these numbers are not practical suggestions—just an illustration of the most extreme possibilities.

The Block Size Debate

This debate has been central to Bitcoin for years.

At least two Bitcoin forks have been born out of the matter. Bitcoin Cash, which split in August 2017, currently has a maximum block size of 32 MB. Bitcoin SV, which split from Bitcoin Cash in 2018, currently has a maximum block size of 2 GB.

Earlier (and now defunct) Bitcoin forks such as Bitcoin XT and Bitcoin Classic also attempted to confront the issue.

Although the debate has been important historically, there are no high-profile changes underway at the moment.

Bitcoin itself has settled on a maximum block size of 1 MB, extended by Segwit, which increases capacity in a more restricted way.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.


Credit: Source link

Previous Post

Facebook Stock Surges 12% to All-Time High After Introduction of 'Facebook Shops'

Next Post

Bitcoin Building a Strong Case as Gold-like Store of Value

Related Posts

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High
Analysis

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High

January 26, 2021
DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion
Analysis

DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion

January 26, 2021
Ethereum Outpacing Bitcoin, Ratio At Two-Year High
Analysis

Ethereum Outpacing Bitcoin, Ratio At Two-Year High

January 25, 2021
wNews: XRP Army’s Contrarian Bet and 10 DeFi Apps to Try Today
Analysis

wNews: All Eyes on Biden, Bitcoin, and the Future of Index Funds

January 24, 2021
Bitcoin Traders Expect Volatility as Options Expire
Analysis

Bitcoin Traders Expect Volatility as Options Expire

January 22, 2021
Next Post
Bitcoin Building a Strong Case as Gold-like Store of Value

Bitcoin Building a Strong Case as Gold-like Store of Value

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Here’s the Current Political Event That’s Driving Bitcoin Higher: Economist

Bitcoin Pullback Here Would Be “Healthy” and Spark Further Upside

November 19, 2020
Bitcoin Consolidating Around $11K, BitMEX CEO Expects Price to Go ‘Down, Then Up’

Bitcoin Consolidating Around $11K, BitMEX CEO Expects Price to Go ‘Down, Then Up’

August 3, 2020

Don't miss it

Bitwise’s Crypto Index Fund Liquidates XRP Position After SEC Sues Ripple
Regulation

SEC’s XRP-Related Lawsuit Did Not Stop Ripple Form Signing Up 15 New Customers

January 27, 2021
Bitcoin’s Short-Term Outlook is Dangerous for Bulls; Here’s Why
Bitcoin

All Eyes are on $26,000 as Bitcoin’s Momentum Shows Signs of Faltering

January 26, 2021
Fidelity Digital To Offer Bitcoin-Backed Cash Loans to Institutional Customers
Regulation

Rothschild Investment Corporation Raises Bitcoin Exposure to $1 Million via GBTC

January 26, 2021
Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High
Analysis

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High

January 26, 2021
Bitcoin On-Chain Data Indicates Extreme Profit Taking Underway
Bitcoin

Bitcoin On-Chain Data Indicates Extreme Profit Taking Underway

January 26, 2021
Matic Network Encouraging Developers to BUIDL with Them Ensuring Ethereum Compatibility
Crypto News

Matic Network Encouraging Developers to BUIDL with Them Ensuring Ethereum Compatibility

January 26, 2021
FindCryptoNews.com

FindCryptoNews is an online news portal that aims to provide the latest crypto news and real-time updates around the world. Feel free to get in touch with us!

Recent News

Bitwise’s Crypto Index Fund Liquidates XRP Position After SEC Sues Ripple

SEC’s XRP-Related Lawsuit Did Not Stop Ripple Form Signing Up 15 New Customers

January 27, 2021
Bitcoin’s Short-Term Outlook is Dangerous for Bulls; Here’s Why

All Eyes are on $26,000 as Bitcoin’s Momentum Shows Signs of Faltering

January 26, 2021

Subscribe Now

Loading

© 2020 FindCryptoNews.com - All rights reserved!

No Result
View All Result
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading

© 2020 FindCryptoNews.com - All rights reserved!

  • bitcoinBitcoin(BTC)$31,821.000.00%
  • ethereumEthereum(ETH)$1,318.74-0.22%
  • tetherTether(USDT)$1.00-0.30%
  • rippleXRP(XRP)$0.265823-0.17%
  • cardanoCardano(ADA)$0.334135-2.33%
  • litecoinLitecoin(LTC)$131.85-2.83%
  • bitcoin-cashBitcoin Cash(BCH)$416.78-2.51%
  • stellarStellar(XLM)$0.255538-0.97%
  • eosEOS(EOS)$2.60-0.51%
  • moneroMonero(XMR)$135.18-1.83%
  • nemNEM(XEM)$0.2430787.99%
  • tronTRON(TRX)$0.028902-1.12%
  • neoNEO(NEO)$22.50-3.04%
  • iotaIOTA(MIOTA)$0.420739-1.17%
  • dashDash(DASH)$101.67-1.46%
  • ethereum-classicEthereum Classic(ETC)$7.29-0.93%