Using Bitcoin Unlimited would like to scale the Bitcoin Cash in the Blockchain On Chain. Since the fronts harden between Bitcoin, Cash, and Bitcoin is a page sees this as the only solution, while the other side is off-Chain to scale. What can you say for and against one of the two solutions?
Bitcoin Cash is planning a Hard Fork to the block size increase. The debate about the scale of Bitcoin in the last years more and more drastic moves. Accordingly, there are now two “Bitcoin-block chains”. Many are wondering which has more potential – which can lead to passionate debates. Whether the pros and cons to weigh the two solutions of Bitcoin Cash and Bitcoin are presented.
Scaling on the Baselayer
The “base Layer” of Bitcoin is the Blockchain. Better said, the most fundamental level, the network is based. It is no secret that the Blockchain is slow and expensive. The space in a Block is scarce, therefore, the transmitter must enter their transaction costs in a competition. The approach of Bitcoin is Unlimited, it is to eliminate this shortage and to leave the choice of the block size of the miners.
In principle, the Blockchain can scale. It is also the simpler solution, and at first glance, closer to what was Satoshi Nakamoto. However, this is only a stage victory. We assume an average transaction size of a Kilobyte and want to increase the block size so that the transaction rate of VISA will be achieved. VISA processed, conservatively, 1,500 transactions per second. Within 10 minutes of 900,000 transactions. With an average transaction size of a Kilobyte would be on a block size of just under a Gigabyte .
Other crypto-currencies aim to optimize the block size of the block of time. Ethereum has a block time of 15 seconds. It is therefore four times are generated as many blocks as is the case with Bitcoin, or Bitcoin to Cash. For A time, this short Block is still a block size of 23 megabytes necessary to process as many transactions as VISA, for the Second, you can not ensure in the case of a short block of time that all Nodes take note of a transaction prior to the Integration in a Block.
Also, is overlooked in the On-Chain solution that this – whether it is a short block of time or a high block size for the decentralisation of the network is counterproductive. Smaller Mining Pools are able to produce larger blocks with a lower probability, and also the Blockchain will grow faster. This private Nodehoster de facto be excluded.
Scaling by a Second Layer
The alternative solution to the so-called “On-Chain-scale” is – who would have thought it – “Off the Chain-scale”. In other words, the solution of the Lighning Network. An additional level is clamped with the Software on the Blockchain and allows for instantaneous and convenient transactions. The Lightning Network is comparable with the Internet itself: You can connect by Opening a Payment Channel, and then transactions, to any Person in the network. The transactions in the Lightning Network are rarely actually written in the Blockchain. This saves costs! Nonetheless inherits the Lightning Network, the security of Bitcoin, and with this quickly. It is not surprising, therefore, that other crypto currencies such as Litecoin or Ethereum with appropriate systems.
The Lightning Network is still in its infancy. Users lost their money and some critics Worry that by Lightning Nodes, a new Form of trusteeship. It would also be sacrificed as in the case of the Big Blocks of the decentralization.
Who will win? The Market!
In summary, it can be said that On-Chain-scaling is difficult and Off-Chain-scaling is still in the test shoes. So who has the edge? We are all Bitcoin maximalists, or Bitcoin is the Cash of the true Bitcoin to emphasize how Roger Ver is not tired? Or will make at the end of Ethereum, Ripple, or even the Verge of the race?
Some time ago one of the speakers compared to the BTC-ECHO-discussed block-stack Event, the maximalism in the crypto sector with nationalism. As an Alternative, you can look around in the world of Linux distributions. The number is similar as in the case of crypto-currencies, varied, and ranges from user-friendly distributions such as Ubuntu is extremely flexible, lightweight like Gentoo.
To explain, instead of its own crypto-currency as the ultimate panacea, you should enjoy currencies to the diversity of the different Crypto. We all can try it out for free after the one-liners be your own bank, and do your own research, off-Chain solutions and on-Chain solutions. You do not need to be set once for one of the solutions, but you can think of, which is for what Use Case makes more sense. Luckily, there are in the Bitcoin Ecosystem a solution for this: the Hard Fork. If it goes on, the fronts hardened, a Hard Fork is the possibility of both approaches. Length of the consensus!