Post
Topic
Board Development & Technical Discussion
Re: Will SegWit be enough to reduce fees?
by
FrueGreads
on 03/03/2018, 23:23:34 UTC
I guess it all depends on the use the network will have. Right now we have low fees again, because there are no spam attacks going, and most users don't really do anything with their coins. The fees problem was greatly caused by exchanges like coinbase and gemini, but they seem to be finally correcting the problem by adoptiing segwit and batching their transactions.

I don’t think the current fee decrease is due to exchanges adopting Segwit and batching transactions.

1) Segwit adoption has not increased.
http://segwit.party/charts/

2) Num transactions has been going down but transaction value is also going down.
https://blockchain.info/charts/estimated-transaction-volume
If more transactions were batches shouldn’ t transaction value being going up?

I believe it’s just lower transaction volume.

But isn't transaction batching basically lowering the amount of transactions? so this could be part of that too.

Segwit penetration is still slow, and will remain slow until we have Core 0.16 and all major exchanges are supporting it. We are closer to that. So I would give a year after Coinbase finally accepts segwit to estimate if segwit adoption is being a failure or not.

We'll have to evaluate impact of LN now that it's on the mainnet.

And like Andreas A said... scaling is a never ending battle. And sometimes not scaling is a better move than rushing things and fucking things up.

What do you mean, that LN will hold back segwit adoption?

How could that be possible, if one of segiwt main reasons, if not the mot important, was to allow for the lightning network to be implemented with no issues. Not an expert, but it was something related to the network malleability. So I think that the LN will never hold back segwit adoption. Anyway, since segwit is implemented by default on the latest core wallet release, I think it's adoption will only grow from now. As for the question in this thread, "is it capable of solving the fees problems alone"? I don't think so, since that's the reason LN is being implemented.

I do have some doubts regarding the LN and segwit. Will exchanges use the LN for trading transactions? Wouldn't they need to run very "large" channels, and be the target of hacks? I know the channel needs to be funded, so where does the coins stay? Will they be able to hold the majority of their funds on cold storage, as they should?