Transaction cost possible fix

[BonkNit]

The cost of moving bitcoin from one wallet to another has exponentially grown to an unacceptable amount in the past year. We've all seen this trend and to normal people it is very concerning in terms of adoption and use. Over a long period of time an idea came to me that made sense and though I don't have the resources or knowledge to implement it I needed to share it to get some discussion going.

Instead of moving bitcoin between wallets, what's stopping people from trading wallets? I've been following bitcoin since 2013 and though I have not had much experience with wallets, I know that each wallet has a private key that opens it. What's stopping bitcoin development from creating wallets with set amounts of bitcoin in them and allowing them to be traded? In terms of people writing down the private key, when a wallet is traded can't there be a new key generated for it? And so instead of trading bitcoin between wallets, people could trade wallets and reduce the strain on the blockchain and potentially lower fees of transferring bitcoin between people.

I didn't know where else to post this so maybe someone can point me in the right direction or share thoughts on this idea. I'm sure it's come up before.

[jseverson]

It's a very roundabout way of trading, and is probably completely impossible unless you're willing to change how the entire technology works. You'll still have to transfer at some point because you'd want to transfer exact amounts.

I don't even think that people transferring to their other addresses is the problem. It's the exchanges. They contribute to most of the traffic. I'm sure it would make a world of a difference if they all opt into Segwit. Your solution won't work with exchanges either since they don't let people see the private keys.

[pooya87]

ok, lets say we implemented that and i own 10BTC in a key and i give the key to you and receive $145,000 and we go our separate ways. what is stopping me from spending the 10BTC as soon as we said goodbye and i received the cash? i have the private key and you have the private key now.

will you just take my word for it that i will be honest and throw away the private key that i sold to you?
  do you see the flaw now?

[BonkNit]

I'm just trying to think of ways to adapt bitcoin to the real world outside of exchanges. If I wanted to pay my friend with bitcoin it's cheaper to just give him a wallet vs sending bitcoin from my wallet to his. It could be standardized in amounts like real world money is broken up into dollars and cents and tracked through a different "wallet". It wouldn't have to really affect bitcoin exchanges in any way. And it could possibly get people to use bitcoin as a currency vs something to only be traded on exchanges.

Also can someone ELI5 Segwit to me or point me to a video. I see it everywhere but I don't know what it is and would like to learn.

And to the new reply, new private keys would have to be generated for the wallets in the transaction to prevent that from happening. I just don't know if that would be possible

[QuestionAuthority]

Here’s a transaction cost fix for you:

[BonkNit]

QuestionAuthority, that is regarding using traditional currency whereas I'm trying to discuss a possible solution to using bitcoin as currency. I get the humor but I'd rather hear some constructive criticism such as jseverson has provided.

[heringasem]

Guys, stop creating this kind of post, i am tired of threads about fees and all those who are spamming the services section.
The only way to FIX a single transaction with low fees, is just PAY more when you send the payment, that is it.

[QuestionAuthority]

Guys, stop creating this kind of post, i am tired of threads about fees and all those who are spamming the services section.
The only way to FIX a single transaction with low fees, is just PAY more when you send the payment, that is it.

My point exactly! You want a free service? Then use something else. There are plenty of free ways to send money out there now.

[jjacob]

The cost of moving bitcoin from one wallet to another has exponentially grown to an unacceptable amount in the past year. We've all seen this trend and to normal people it is very concerning in terms of adoption and use. Over a long period of time an idea came to me that made sense and though I don't have the resources or knowledge to implement it I needed to share it to get some discussion going.

Instead of moving bitcoin between wallets, what's stopping people from trading wallets? I've been following bitcoin since 2013 and though I have not had much experience with wallets, I know that each wallet has a private key that opens it. What's stopping bitcoin development from creating wallets with set amounts of bitcoin in them and allowing them to be traded? In terms of people writing down the private key, when a wallet is traded can't there be a new key generated for it? And so instead of trading bitcoin between wallets, people could trade wallets and reduce the strain on the blockchain and potentially lower fees of transferring bitcoin between people.

I didn't know where else to post this so maybe someone can point me in the right direction or share thoughts on this idea. I'm sure it's come up before.

If you do not want to send coins over the internet, there is always opendime or physical bitcoins for you. There is no transaction cost associated with these. Plus the overall privacy of the network improves.
Transaction fees will automatically come down once the mania over cryptocurrencies subsides. Otherwise, we will have to wait until lightning network and other scaling solutions are implemented.

[Dhaaaw]

That only shows how bitcoin is not yet ready for mass adoption and for everyday use, buy worry not its not going to stay that way for a long time, people are working on a fix and ways around it you just need to arm yourself with patience.

[Anti-Cen]

Well done OP, top marks for thinking outside the box and yes it sounds like a good plan to me.

Longer term the miners (Ten big names) need to be taught a lesson and we need a system that
does not become a hostage to them ever again like we are today.

Clearly decentralized is not working as it was designed to work and not just because of miners but also
Coinbase and Co.

Surly we just need software running on something similar to what we call miners today that
will allow selling and buying without having to use Coinbase and then we can get back to having an
exchange rate that remains the same across the globe.

The car we are running is a lemon, we need a new one.  

[QuestionAuthority]

Well done OP, top marks for thinking outside the box and yes it sounds like a good plan to me.

Longer term the miners (Ten big names) need to be taught a lesson and we need a system that
does not become a hostage to them ever again like we are today.

Clearly decentralized is not working as it was designed to work and not just because of miners but also
Coinbase and Co.

Surly we just need software running on something similar to what we call miners today that
will allow selling and buying without having to use Coinbase and then we can get back to having an
exchange rate that remains the same across the globe.

The car we are running is a lemon, we need a new one.  

Oh, that’s a good idea. Punish the guys that have spent untold millions on mining equipment to keep bitcoin alive.

I’ve got an idea. Go buy a mansion for 10 million dollars and let me live there for free. I’ll stay there for years and fuck your property up and right before I leave I’ll burn your house to the ground and make your investment worthless.

Miners have a limited time to recover their investment before they need to buy new equipment because it literally burns up. Cut their profit and they won’t buy any replacement equipment and bitcoin will suffer. That will teach them a lesson. Do any of you people actually know how bitcoin works?

[escrow.ms]

What we need right now is a offchain wallet built by trusted company or a collaboration between top exchanges and wallet services. It's possible but no none wants to do it.

[Anti-Cen]

Oh, that’s a good idea. Punish the guys that have spent untold millions on mining equipment to keep bitcoin alive.

I’ve got an idea. Go buy a mansion for 10 million dollars and let me live there for free. I’ll stay there for years and fuck your property up and right before I leave I’ll burn your house to the ground and make your investment worthless.

Miners have a limited time to recover their investment before they need to buy new equipment because it literally burns up. Cut their profit and they won’t buy any replacement equipment and bitcoin will suffer. That will teach them a lesson. Do any of you people actually know how bitcoin works?

L@@K Mining is not a democracy and has turned into a monopoly so that ten big players now control 90% of
all transactions and if someone was silly enough to join a pool that pays next to naff all then that is there fault not mine.

Fees at start of year were about $0.01 and today they are $40.00 + so you defend them all you like but I am not buying
any of it.

"Do any of you people actually know how bitcoin works"

Yes lots of wasted energy reeving the cars engine without putting the car in gear and miners
trying to win coins by buying bigger and bigger rigs.

Since you know how BTC works (bet he does not program for a living) then you will understand
when i say that the active thought put of BTC transactions is a mere 14Kbs but if you have trouble
working it out then ask and I will help you

 

[kryptqnick]

It's a very roundabout way of trading, and is probably completely impossible unless you're willing to change how the entire technology works. You'll still have to transfer at some point because you'd want to transfer exact amounts.

I don't even think that people transferring to their other addresses is the problem. It's the exchanges. They contribute to most of the traffic. I'm sure it would make a world of a difference if they all opt into Segwit. Your solution won't work with exchanges either since they don't let people see the private keys.

Exactly. At least, one has to transfer some money onto the exchange first and the fee is to high for that. Moreover, one might also want to be able to withdraw the money afterwards, which would also be hard (unless one converts btc into, say, ltc on exchange and then sells ltc for fiat). I think something major has to be done with bitcoin's technology, we can't just avoid transaction fees forever. Yet for now there are some good ways of dealing with the problem: it doesn't always work, but if you have btc on blockchain, you can transfer your btc to eth (or btc to bch and then to eth, just look at the prices) and then withdraw ethereum to some place where you sell it for fiat or use for other purposes. This way you may pay something like $1-3 instead of $30, but again, that's just a temporary solution.

[bitcoinposts]

Bitcoin Transaction fees are too high due to recent price hike it is the main reason for other fork coins to get momentum

[Anti-Cen]

What we need right now is a offchain wallet built by trusted company or a collaboration between top exchanges and wallet services. It's possible but no none wants to do it.

You seem to be in danger of thinking for yourself !

Are you talking about real P2P wallets that uses some type of autonomous currency unit
that I can send direct to your wallet so you can validate the coin is real using cryptography

Will need a type of DNS service so that i can find your public address but the DNS Type servers
would have no control what so ever about the data that is exchanged and Tor already does
something a bit like this to resolve onion addresses on the network to hidden sites.

Forget mining new coins like we do now because General Electric designed the plan
with the help of GPU video card manufactures so that they could get rich

[QuestionAuthority]

Oh, that’s a good idea. Punish the guys that have spent untold millions on mining equipment to keep bitcoin alive.

I’ve got an idea. Go buy a mansion for 10 million dollars and let me live there for free. I’ll stay there for years and fuck your property up and right before I leave I’ll burn your house to the ground and make your investment worthless.

Miners have a limited time to recover their investment before they need to buy new equipment because it literally burns up. Cut their profit and they won’t buy any replacement equipment and bitcoin will suffer. That will teach them a lesson. Do any of you people actually know how bitcoin works?

L@@K Mining is not a democracy and has turned into a monopoly so that ten big players now control 90% of
all transactions and if someone was silly enough to join a pool that pays next to naff all then that is there fault not mine.

Fees at start of year were about $0.01 and today they are $40.00 + so you defend them all you like but I am not buying
any of it.

"Do any of you people actually know how bitcoin works"

Yes lots of wasted energy reeving the cars engine without putting the car in gear and miners
trying to win coins by buying bigger and bigger rigs.

Since you know how BTC works (bet he does not program for a living) then you will understand
when i say that the active thought put of BTC transactions is a mere 14Kbs but if you have trouble
working it out then ask and I will help you

 

When are you going to send me the keys to your house. I need a place to live.

Home girl, I was mining years before you ever heard about bitcoin. It costs a hell of a lot of money to buy equipment and today it’s incredibly difficult to ROI. Finding a cryptographic hash with an ever increasing difficulty is crazy stressful on equipment. Miners have a big investment in equipment that will not last long.

Mining was never intended to be a free service. Originally, the block reward was the payment for mining and was expected to eventually be replaced by mining fees. IF bitcoin use grows large enough and IF the fees can be spread among enough users the fee will come down but it will never be free. Bitcoin is not and will never be a free service.

[kimochidesh]

Transaction fees is going crazy with growing popularity and price of BITCOIN. And lighting network is the only solution to it otherwise bitcoin will flop in upcoming years. Investors will start shifting to altcoins or Bitcoin forks to save fees and time.

[Anti-Cen]

Bitcoin Transaction fees are too high due to recent price hike it is the main reason for other fork coins to get momentum

You mean the miners decided to skim the cream from off our cake as prices started to go up
and then attempted to lock us in.

Looks like spending more and more money just so machines could keep competing against
each other in a pointless race didn't quite workout for them

Avoid block-chains if you can when looking for alt-coins because evolution will
push them all out in the long term and if a small amount of semi decentralized
servers are needed then forget about something cooked up in academia and run
with it because in the real world that's how things work.