Bitcoin Network Capacity is Reaching a Critical State: Mike Hearn - page 2.

odolvlobo

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Quote from: Omikifuse on May 06, 2015, 02:43:36 PM

What will happens when Bitcoin capacity runs out Huh

Bitcoin will die, or transactions will take days to confirm Huh

What does it means?

Bitcoin will not die, but it will change.

When the limit is reached, a transaction will have to pay a fee in order to be confirmed by the block chain, and the amount paid will determine how quickly the transaction will be confirmed (if ever). The amount that has to be paid could rise very high if Bitcoin goes mainstream.

As a result, most transactions will move off-chain, but they will still backed by the block chain.

Omikifuse

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What will happens when Bitcoin capacity runs out Huh

Bitcoin will die, or transactions will take days to confirm Huh

What does it means?

gentlemand

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Quote from: Nagle on May 06, 2015, 02:05:54 PM

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

If it hits 0.1 BTC to send one satoshi then the only people left will be miners. The free market will go somewhere they're not going to be raped. BTC is purely optional and sometimes a prime pain up the arse. It wouldn't take all that much for people to abandon it before it gets going.

ebliever

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Quote from: Nagle on May 06, 2015, 02:05:54 PM

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

I think it is in their interest. The value of bitcoin is hobbled by the small number of people who can use it, and network capacity is a major bottleneck. To boost the price of bitcoin there will need to be a large increase in the number of people holding bitcoin, and a corresponding increase in the number of transactions. That means an increase in the block size.

Nagle

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The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

odolvlobo

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In short, the problem being described is that we are reaching the 1 MB cap on the size of a block. When that happens, some transactions may never make it into a block because of space limitations. It may or may not actually be a problem, but Mike Hearn considers it a problem and he states that the only solution that can be implemented before the limit is reached is to raise the limit.

The original article is clearer than the CCN summary. You can read it here: https://medium.com/@octskyward/the-capacity-cliff-586d1bf7715e

S4VV4S

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What does he mean: Bitcoin capacity will run out this year?

I don't get it.

InceptionCoin

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Quote from: tokeweed on May 06, 2015, 07:27:56 AM

...Bitcoin Network Capacity is Reaching a Critical State: Mike Hearn...

From one hand there are a few solutions to increase throughput of bitcoin, from other hand if protocol will not changed on time nothing catastrophic will be occur. We just will get situation when tx_fee have more important role.

coinableS

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Ugh, I grow tiresome of the debate regarding the blocksize. To me it is clear it needs to be increased but other solutions are needed as well. You can't tell people not to "spam" the blockchain with micro-transactions because they will do it anyways. The "spam" txs will fill the current block pushing "real" transactions to wait for the next block. Increase the blocksize should solve this. My current blocks folder is 37.2 GB, and it will keep growing. Maybe some sort of abridged chain or pruning will come into play? The last 6 blocks were all under 500kb so just because if they increase it to 5 or 10MB doesn't mean we will all start having 5 or 10MB block sizes. Anyways, I'm all for kicking the can down the road for now, better than another story for the media on why bitcoin died again.

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Quote

According to Hearn’s calculations, Bitcoin capacity will run out this year, and this is why he and Gavin Andresen have begun talking about and working on getting ahead of this issue. Bitcoin usage seems to have fallen into a fairly consistent pattern of stagnation in the Spring and Summer, and growth in the fall and winter, going back to Mt. Gox in 2013. Mike Hearn worked for three out of his eight years at Google doing capacity research within their Geo Team for Google Maps/Earth, so this is not his first rodeo when it comes to network capacity issues.

“Quite simply, we are out of time. There are no credible technical proposals that could gain widespread adoption within the next twelve months, beyond simply raising the capacity on the existing system,” says Mike Hearn.

https://www.cryptocoinsnews.com/bitcoin-network-capacity-reaching-critical-state-mike-hearn/

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