You miscalculated. It is worse than that.
Transactions are around 250 bytes (not 512). 1MB/250byes = 4194 transactions. That is 7 transactions per second.
There is a trade-off. If you make the block size larger, then the blockchain grows. This makes it harder to run a node.
A small block size means that fees are higher due to space limitations.
If you see bitcoin as "store of value", then security is critical. This means that the p2p nature of the system must be protected, so smaller blocks are better.
If you see it as purely a payment system, then larger blocks are better as they have a higher number of transactions per second.
You can get the best of both worlds (somewhat) if you use the current bitcoin system as the foundation and then build fast/low cost transaction services on top of it.
The "channels" system would be an example of that.
Topic: Block size limit problem - page 2. (Read 1573 times)
Hi,
One block is solved every ~10 minutes. It is limited to 1mb, which means that there is a limited number of transactions per unit of time.
i.e. blockchain.info reports that in recently solved blocks one transaction used ~0.5kb, so there is a limit of 1mb/0.5kb == 2 097 152 transactions for every block.
I do understand that transactions which did not fit in one block go to the next one, but what if we will have constantly over 2 097 152 transactions every 10 minutes? That's only 3495/second, once Bitcoin will become popular, and used around the entire world, it's not so difficult to imagine this will happen some day.
Or am I missing something?
One block is solved every ~10 minutes. It is limited to 1mb, which means that there is a limited number of transactions per unit of time.
i.e. blockchain.info reports that in recently solved blocks one transaction used ~0.5kb, so there is a limit of 1mb/0.5kb == 2 097 152 transactions for every block.
I do understand that transactions which did not fit in one block go to the next one, but what if we will have constantly over 2 097 152 transactions every 10 minutes? That's only 3495/second, once Bitcoin will become popular, and used around the entire world, it's not so difficult to imagine this will happen some day.
Or am I missing something?
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