Quote from: tvbcof on October 25, 2014, 11:23:55 AM

Quote from: LeMiner on October 25, 2014, 09:28:14 AM

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In order to prevent high transaction fees we need to increase blocksize and remove the 7tps limit. It appears that the majority of community is in "pro" of this so it should be done quickly to prevent the inevitable high transaction fee explosion. When transaction fees become important hopefully miners will make their fees by high volume of transactions (all at a low fee).

Example:

Bitcoin high frequency trading:

47,000 tps (around the peak rate of VISA) = 28,200,000 transactions per ~10 minute block

Fee of 0.000000017 = 5 bitcoins per block transactions reward for miners. Easily sustaining the network at a high price. If Bitcoin is going to be a global cash system we'd probably have hundreds of thousands of transactions per second. But having more transactions per second than VISA is a good initial.

High transaction fees:

7 tps limit:

5 bitcoins (transaction reward) / 4200 (tranactions per block) = 0.001190 transaction fee. Way too high for the consumer paying his hamburger at a restaurant.

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Combining pruning + near no limit of transactions = low transactions fee.

Why artificially limit a open concept market? The market will take care of the fee, we shouldn't impose limits on it except to prevent massive blockchain spam or otherwise malicious activities.

That should make it pretty clear why I (and quite a few others) don't believe that Bitcoin in anything remotely resembling it's original and described implementation (distributed persistent decentralized ledger) is applicable as a solution to the described problem. Bitcoin won't scale just because people would think it's cool if it did. A handful of large organizations probably could run Bitcoin at these rates but realistically that's about it, and at that point they may as well do away with the blockchain itself and make it a real-time system like VISA. That's why clued in folks like the blockstrream guys are looking around for a solution which will let Bitcoin scale to these levels without abandoning the very desirable aspects of the solution that it has today.

Actually combining blockchain pruning (i.e, the "main" blockchain only storing UNSPEND addresses), and some of the new emerging technologies like ed25519 that even on an old 2010 CPU we're already capable of 80,000 verifications per second. Seeing how we have a HUGE HUGE way to go before we actually reaching that amount of transactions per second, when we actually do reach it would likely be way post 2020, where we will have even faster hardware and likely better algorithms, which should technically be able to sustain the guidelines I mentioned.

Not to mention that most people would be running light clients anyway around that time, just as described in satoshi's original paper.

In the end there is no reason not to have everything running on the main blockchain since technological difficulties can be overcome.