delvingbitcoin

Is it time to increase the blocksize cap?

Is it time to increase the blocksize cap?

Original Postby ariard

Posted on: June 5, 2024 00:38 UTC

The discussion opens with an exploration of the philosophical beliefs surrounding Bitcoin, highlighting its potential as a tool for financial freedom, human rights, and individual autonomy.

However, it quickly transitions to addressing the pragmatic challenges that constrain this idealistic view, such as the limitations imposed by physics, economics, mathematics, and world geography. The narrative emphasizes the difficulties in providing scalable access to the Bitcoin blockchain for self-custody, particularly for marginalized communities, such as families in Ethiopia living on $5 per week. This introduces the problem of the lack of a Chain-state Delivery Network which is essential for verifying self-custodied bitcoins without relying on the full network of nodes.

The text then delves into the complexities and issues related to self-custody solutions. These solutions, while diverse and numerous, introduce a set of auxiliary problems when sophisticated spending policies are implemented. Such issues include the need for just-in-time fees reserves, constant monitoring, and robust backup systems. These challenges are not exclusive to any particular group of coin holders but are universal across individuals, governments, banks, and corporations. Moreover, the piece discusses the considerations necessary when operating one or more full-nodes, especially when running a second-layer node on top of a full-node. It underscores the importance of first addressing the known security vulnerabilities inherent in the current block size to preserve the network's base-layer robustness.

Further, the lightning network is introduced as a significant albeit imperfect scaling technology for Bitcoin. Despite its drawbacks, likened to the Trabant, a car known for its shortcomings, lightning remains the most viable solution for scaling Bitcoin at present. Looking ahead, the author mentions anticipated developments such as CoinPool, which promises to offer more sophisticated scaling solutions but requires substantial consensus changes to be realized.

The outlook for scaling Bitcoin involves realistic expectations for the growth of lightning channels over the next five years, highlighting the need for smarter automated liquidity management to mitigate high on-chain fees. However, it acknowledges the delays in achieving scalable "cypherpunk" payment solutions for economically disadvantaged groups.

Finally, the text critiques the decision-making process within the Bitcoin community, pointing out a perceived autocracy among Bitcoin Core developers. This segment argues that while many developers have earned their influence through years of contribution, there is a risk of inertia and entitlement that could stifle innovation and debate. The piece concludes by acknowledging the delicate balance required to maintain a conservative yet progressive approach to Bitcoin's development, ensuring a cautious yet effective evolution of the platform.