From what I understand, a larger block size would mean more transactions (or data in general) can be included in each block effectively increasing the number of transactions the network can handle in a finite time frame (at least 1 block long). Consequently, the size of the blockchain will increase at a greater rate since more data is being added everytime a block is accepted. Eventually, this would mean the blockchain would be too large to store so only dedicated companies will be able to have full nodes, resulting in the centralization of mining.
Wouldn't that happen eventually anyway? Sure it'll take longer but unless the chain is pruned how will people be able to store it?
The only people running full nodes now are enthusiasts who like verifying everything themselves (though it's getting harder since the blockchain is already pretty big), pool operators, and mining farms or services like NiceHash/Blockchain.com
This is not a post in support of a change in block size or for sidechains, I'm not qualified to take a side in that debate at all lol. What are the consequences of a block size increase and more specifically how it would be harmful for bitcoin's decentralization?
i do not see it as a threat to decentralisation, the larger the size of the block the more data it accumulates or stores and that has little to do with the miners as it works with the design of the blockchain and and miners only works with the conditions of the blockchain design and whatever comes is within the network design so little of it only concerns the miners.