Post
Topic
Board Development & Technical Discussion
Re: Now that we've reached the 250kb soft limit...
by
Peter Todd
on 07/03/2013, 04:13:02 UTC
I'm not saying that Bitcoin will shrink, I'm saying that it will reach an equilibrium where there is no more growth in terms of new users operating directly on the block chain. Instead, there will be an industry of companies that do things off the block chain and settle up once a day or every few hours. Of course miners would love that, since the fees will be maximized. And anyone using Bitcoin as a store of value will be happy with it as well, since the network hash rate will be maximized.

This.

I'd consider myself a pretty knowledgeable guy about Bitcoin - I've even gotten a few lines of code into the reference client and once found a (minor) bug in code written by Satoshi dating back to almost the very first version.

You wanna know where I keep my coins for day-to-day spending? Easywallet. So it's centralized - so what? If it goes under I'm not going to cry about the $100 I have there, and I do care about how it ensures that every transaction I make it unlinkable, and since I access it over Tor, even Easywallet has a hard time figuring out who I am.

My savings though? Absolutely they're on the blockchain, with rock-solid security that I can trust - I've read most of the source-code myself. Sure, transactions won't be free, or even cheap, but you get what you pay for, and I know I'm getting the hashing security I paid for.

With cryptography we can create ways to audit services like Easywallet and make it impossible for them lie about how many coins back the balances in the ledgers they maintain. Eventually we can even create ways to shutdown those services instantly if they commit fraud. In fact, with some changes to the Bitcoin scripting, I think we can even make it possible for users of those services to automatically get refunds when fraud is proven, although I and others are still working on that idea - don't quote me on that yet. Tongue

The point is, we have options, and those options don't have to destroy the truly decentralized and censorship-proof blockchain we have now, just so people can make cheap bets on some silly gambling site.