Post
Topic
Board Development & Technical Discussion
Re: What is the maximum throughput supported by the transaction of the Bitcoin?
by
NotATether
on 28/10/2022, 13:53:50 UTC
We you figure out the amount you will be surprised because the number is really small if you compare it with visa transactions.
I don't think it is realistic to compare bitcoin throughput with the throughput of a major credit card network.

Visa's transactions are stored in a centralized database. By contrast, all bitcoin (on-chain) transactions are broadcast and stored by every bitcoin user with a full node. Granted, LN will aggregate transactions together, but the decentralized nature of LN will not allow scaling to reach "visa" levels.

It's a classic Sztorc "Trilemma" of scalability vs decentralization vs security, and the solution is to make a centralized* Layer 2 that is scalable and secure.

*Note: The owners of this network will be the collective group of merchants who want to settle payments with customers. They would each have a partial ownership proportional to their percentage transaction volume on the layer, just like shares in a company.