Bitcoin Network Capacity is Reaching a Critical State: Mike Hearn

[tokeweed]

According to Hearn’s calculations, Bitcoin capacity will run out this year, and this is why he and Gavin Andresen have begun talking about and working on getting ahead of this issue. Bitcoin usage seems to have fallen into a fairly consistent pattern of stagnation in the Spring and Summer, and growth in the fall and winter, going back to Mt. Gox in 2013. Mike Hearn worked for three out of his eight years at Google doing capacity research within their Geo Team for Google Maps/Earth, so this is not his first rodeo when it comes to network capacity issues.

“Quite simply, we are out of time. There are no credible technical proposals that could gain widespread adoption within the next twelve months, beyond simply raising the capacity on the existing system,” says Mike Hearn.

https://www.cryptocoinsnews.com/bitcoin-network-capacity-reaching-critical-state-mike-hearn/

[coinableS]

Ugh, I grow tiresome of the debate regarding the blocksize. To me it is clear it needs to be increased but other solutions are needed as well. You can't tell people not to "spam" the blockchain with micro-transactions because they will do it anyways. The "spam" txs will fill the current block pushing "real" transactions to wait for the next block. Increase the blocksize should solve this. My current blocks folder is 37.2 GB, and it will keep growing. Maybe some sort of abridged chain or pruning will come into play? The last 6 blocks were all under 500kb so just because if they increase it to 5 or 10MB doesn't mean we will all start having 5 or 10MB block sizes. Anyways, I'm all for kicking the can down the road for now, better than another story for the media on why bitcoin died again.

[InceptionCoin]

...Bitcoin Network Capacity is Reaching a Critical State: Mike Hearn...

From one hand there are a few solutions to increase throughput of bitcoin, from other hand if protocol will not changed on time nothing catastrophic will be occur. We just will get situation when tx_fee have more important role.

[S4VV4S]

What does he mean:  Bitcoin capacity will run out this year?

I don't get it.

[odolvlobo]

In short, the problem being described is that we are reaching the 1 MB cap on the size of a block. When that happens, some transactions may never make it into a block because of space limitations. It may or may not actually be a problem, but Mike Hearn considers it a problem and he states that the only solution that can be implemented before the limit is reached is to raise the limit.

The original article is clearer than the CCN summary. You can read it here: https://medium.com/@octskyward/the-capacity-cliff-586d1bf7715e

[Nagle]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

[ebliever]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

I think it is in their interest. The value of bitcoin is hobbled by the small number of people who can use it, and network capacity is a major bottleneck. To boost the price of bitcoin there will need to be a large increase in the number of people holding bitcoin, and a corresponding increase in the number of transactions. That means an increase in the block size.

[gentlemand]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

If it hits 0.1 BTC to send one satoshi then the only people left will be miners. The free market will go somewhere they're not going to be raped. BTC is purely optional and sometimes a prime pain up the arse. It wouldn't take all that much for people to abandon it before it gets going.

[Omikifuse]

What will happens when Bitcoin capacity runs out

Bitcoin will die, or transactions will take days to confirm

What does it means?

[odolvlobo]

What will happens when Bitcoin capacity runs out
Bitcoin will die, or transactions will take days to confirm
What does it means?

Bitcoin will not die, but it will change.

When the limit is reached, a transaction will have to pay a fee in order to be confirmed by the block chain, and the amount paid will determine how quickly the transaction will be confirmed (if ever). The amount that has to be paid could rise very high if Bitcoin goes mainstream.

As a result, most transactions will move off-chain, but they will still backed by the block chain.

[coinableS]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

If it hits 0.1 BTC to send one satoshi then the only people left will be miners. The free market will go somewhere they're not going to be raped. BTC is purely optional and sometimes a prime pain up the arse. It wouldn't take all that much for people to abandon it before it gets going.

Kudos, a big +1 here gentlemand.

[bg002h]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

It is clearly in miners best interest to increase maximum block size…but it is not in their best interest to produce larger blocks with the slow block propagation speed on the Bitcoin network as it stands today. I don't know who the idiot was that suggested as max block size --> infinity, tx fees --> 0. That simplistic view is complicated enough to make people think they are understanding some deep truth and react religiously as opposed to thoughtfully.

Peter Todd had a great and very simple write up on the calculus of tx inclusion On the dev list about 1.5 years ago or so. Max block size is not the problem at the moment…the very high BTC25 block reward is the reason miners won't make large blocks. Block size will grow as block reward goes down and/or block propagation speed goes up.

[QuestionAuthority]

So are we giving up on that whole Bitcoin replacing fiat thingy? lol

Does the dev team even know how to contact the mining majority in China to ask them if they will support the change?

[BTC_Superman]

What does it mean? I cannot understand clearly.

[MicroGuy]

In my view, we need to find a new Satoshi to lead us out of the darkness. These tiny patches are miniscule when compared to the real challenges facing bitcoin.

Let's face it, go ahead and admit it, bitcoin is centralized. Now let's find, and crown, a really awesome king to light the way.

[LiteCoinGuy]

summary: we are doomed. end.

[manselr]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

What happens if you dont pay the required fee an your transaction is never processed? you lose the money?

[bri912678]

The free market provides a solution. When the block size fills up, people will pay higher transaction fees to get their transactions through. Free riders paying zero or low transaction fees won't get their transactions processed.

The block size can only be increased if the big miners agree, and it's not in their interest to increase it.

What happens if you dont pay the required fee an your transaction is never processed? you lose the money?

Right now it takes longer for miners to process your transaction. I hope it never gets to the point where your coins get lost in limbo because the network is overloaded.

[odolvlobo]

In my view, we need to find a new Satoshi to lead us out of the darkness. These tiny patches are miniscule when compared to the real challenges facing bitcoin.

Let's face it, go ahead and admit it, bitcoin is centralized. Now let's find, and crown, a really awesome king to light the way.

In other words, you need someone to tell you what to do. You can't bear to be responsible for your own actions.

[gentlemand]

In my view, we need to find a new Satoshi to lead us out of the darkness. These tiny patches are miniscule when compared to the real challenges facing bitcoin.

Let's face it, go ahead and admit it, bitcoin is centralized. Now let's find, and crown, a really awesome king to light the way.

The only one who would be remotely worthy would be the original. He/she/it has made their wishes known with deafening silence.