Quote from: spaceshaker on July 13, 2010, 06:49:19 PM

Quote from: Mionione on July 13, 2010, 01:10:08 PM

what happen if millions of transactions occurs during the block generation, would be block size huge ?

I really love the concept and technology here but I am still trying to wrestle with the implications. I see two potential problems if bitcoin was to become a very popular currency/system.

The number of blocks is infinite and the history; the complete chain is important. Even though blocks are small (at least today) I am concerned that this system relies on each peer having a complete record of the entire chain. After many years and supposing hundreds of millions of people generating blocks, wouldn't the size of the chain become untenable?
Closely related to the above point: As the number of transactions per-second go up the size of the blocks also go up. If the system ever got to the point of having hundreds of thousands of transactions per-second the model seams unsustainable. One could argue that the number of blocks generated would also increase but this only exacerbates the the issue I pointed out above.

From what I read in the Technical Paper, old transactions are compressed after a while. The Coin spending process only needs to know that transfer from Owner A to Owner B was valid. It doesn't matter if 1 year ago, Owner C gave it to Owner A. At least from what I get, it keeps the transaction history from reaching infinity.