Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
AlexGR
on 21/06/2017, 05:40:49 UTC
Also, Bitcoin is not broken, that's right... And I don't know enough about blockchains as I do about networks and most networks that exceed 80-90% capacity are bound to severe issues. We would need to reduce that congestion to 50% to be safe. Segwit will largely help in the long term, a blocksize increase can aleviate some of the issues right now.

Let's say you run the network of a company and it has 10gbps - and you are at 10-30% use. This line costs you 10 grand per month.

I flood your line (externally) by attacking it (DDOS) to 100% use all the time. Will you upgrade to 100 gbps and take your bill to 5-7x just because someone is DDOSing you? And if I do that again and again, not even 1 tbps will save you - but if you follow the upgrade logic due to DDOS, your company will be bankrupt.

Blockchain use is similar. Even if blocks were 10x tomorrow morning, they would be full by very low fee txs. Even if they were 100x in size, someone running a script can fill them up - and the fees will be pretty low, as there will be no fee pressure. Still individual nodes go bankrupt as they can't sustain storage and bandwidth costs scaling to 10-100x.