Bitcoin Forum

If Bitcoin can't handle the amount of transactions causing the block size debate and Chinese exchanges like Houbi have massive amounts of transactions due to their 0 transaction fee on trades. Could Bitcoin integrate something similar to Ripple where every transaction destroys a fraction of a bitcoin (tiny amount) to avoid this from occurring, lowering the amount of transactions and reducing the need for a larger block size?

If I'm reading you right, you have a few things mixed up.

Trades made on exchanges are generally not made on the blockchain. The only blockchain transactions involved in trading at an exchange are when you send BTC in and withdraw BTC out. All the rest is done on the exchanges internal database and doesn't encumber the Bitcoin system at all.

I don't see how destroying small amounts of BTC would help. Miners can already decline to process transactions without fees.

This were my exact same thoughts when reading this.

The exhange trading has nothing to do with movements on the blockchain. Only withdrawels, deposits and the exchange moving the funds around are processed on the blockchain. The rest is handled on their internal systems. There will be no massive extra transactions because of that.

Destroying a certain amount of coins on each transaction already kind of happens in the form of miners fee. Although the coins don't get destroyed, they go to the miners as a reward. Miners generally don't include transactions which have no fee attached to it, so in theory this should prevent massive spam.

The problem is that people are sending a huge amount of transactions at either no fees to make a huge back log, or they are sending transactions with a fee at a loss to show there is a problem.

maybe make block size larger is more impossible than intergrating something similar to ripple. because in the future there will be more transactions

The Core team would disagree with this solution. Bitcoin capacity need to be limited to make sure the network remains decentralized, because large blocks could cause delayed propagation. Only high tiered miners near fast datacenters would afford to stay competitive, while miners on home connections would suffer from increased orphan risk.

Core team is really qualified on the subject, and capacity increases are on the schedule.