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Thread opened • Economics • 2 months ago

Pentagon can't account for 220 Billion.

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Thread opened • Digital Currencies Bitcoin SV Economics Technology • 3 months ago

B(TC)itcoin is slow

Bitcoin is slow because the block size was left at 1MB - 2MB with Witness Data on the SEGWIT network - after throwing the entire "team" developer of GitHub and being occupied by developers of what is now known as Blockstream.This size has been maintained...

Bitcoin is slow because the block size was left at 1MB - 2MB with Witness Data on the SEGWIT network - after throwing the entire "team" developer of GitHub and being occupied by developers of what is now known as Blockstream.This size has been maintained and keeps referring to two issues: Mining in China and the decentralization of the nodes or transaction validators that you point out in the article.

Mining in China occupies a good part of the pie that miners distribute - in turn these are the ones that confirm the transactions and undermine the blocks - since 2011 and these Chinese farms are behind something that in the West call "The Great Firewall "that prevents a stable connection and slows down the propagation of the block, its mining and confirmation of the transaction over 3 minutes [1] [2] causing a large part of the mining coming from China and therefore the power of 'Hash' decreased drastically affecting the security of Bitcoin; The less Hash the greater the possibility of being attacked by the Bitcoin network through a 51% attack that could cause double spending - although this gives rise to many debates since the 51% attack on an already "mature" network like Bitcoin requires a Considerable expenditure on mining equipment to control 51% of the mining power and receiving the block reward and the commissions for confirmed transfer on each block would make it less likely that said miner or mining group would like to make a double expense upon receiving sufficient economic compensation. So only a malicious agent with the intentions of destroying the network and assuming the total losses on the investment of equipment would be willing to carry out such operation. Possibilities exist but these are reduced by being the miner compensated for their activity.

In the same references to Chinese mining farms but in another more economical field; Bitcoin has 21 million that are obtained through mining and commissions on transfers. These 21 million are achieved over time and from there it becomes a deflationary element as there is no possibility of printing more coins. The question of the Bitcoin block costly and the influence of Chinese mining goes through the Bitcoin subsidy or, currently called as, block reward: When a miner puts a block in the chain he receives the Bitcoin reward that is "inside" "of that block and which is currently encrypted in 12.5. Every 210000 blocks the reward is reduced by half so in less than a year (312 days from today [3]) it will be reduced to 6.25 so the miners will see their subsidy fall in half unless Bitcoin's price per coin increases considerably or the mining farms begin to close or reduce mining equipment thus decreasing the power of the network's Hash. If Bitcoin reduces by half every 210000 blocks the subsidy per block to miners will come a time when they can only live and maintain their equipment for transaction fees and in a Bitcoin network with 7 transactions per second and a commission that tends to Increase the higher the number of movements in it makes it unfeasible for miners to continue in said 1MB network and above all that people want to use this payment method that is expensive and slow - more even than gold paper - Because remember that Bitcoin born as Peer 2 peer cash, not gold-.Therefore, if in time the subsidy or reward is going to be 0 or unable to cover the mining equipment expense, it is necessary to find a solution if the developers do not want to touch the block size. And this goes through three issues already raised in BIPs and about the community: RPF (Replace By Fee), Lightning Network and Increase in the number of Bitcoin since the demand for Bitcoin does not rise because it offers a quality service but for security and above all for the manipulation of Tether (USDT) and the large exchange houses:

- The RBF consists in the substitution of a transaction without confirmations for another that would replace it with a higher commission eliminating the previous one of the mempool - the limbo of the transactions to be confirmed in Bitcoin -. Although this system seems effective, it does not eliminate the long-term problem of continuing to maintain the reduced block, but rather removes the problem of financing miners, but does not eliminate it and, above all, kills the operation of Bitcoin transactions by not eliminating the increase in commissions that would distance the user from its use. In addition to more easily allowing double spending [4] [5].- Lightning Network is a side-chain or second layer, that is, a software development not implemented in the Bitcoin network itself and therefore is not an element of the block chain so this should already be repudiated since being a External and non-auditable element such as Bitcoin gives rise to "blanks" and therefore lack of existence and possibility of auditing accounts [6] and even the loss of money or cancellation of the transaction [7] [8]. It also faces the problem of routing since in a network in constant change with the openings and closures of payment channels it is unfeasible to establish a total and rapid diffusion to the nodes of LN - other than those of Bitcoin - so it comes into play Another new element of this network is the watchtowers in charge of ensuring compliance in open channels and over the entire LN network of payments. Obviously it requires an additional cost to hire this service and it is not yet implemented [9] and taking into account the pace at which Lightning Network is developed, it is doubtful that it will become available [10]. In short, to use properly - which is not successful - LN you need a node valued at $ 300 [11], a watchtower, have a channel open 24/7 and with sufficient funds to carry out transactions [12] [13] [14] . - The increase in the Bitcoin offer was raised fleetingly by developer Peter Todd [15] [16] and will become an open debate in a few years when the mining block reward is low and the price of Bitcoin cannot be sustained only with uncontrolled printing of Tether and the manipulation on the price of the currency [17] [18] next to the collusion of the exchange houses headed by BitFinex [19] and personalities of the world 'crypto' [20] - if he survives long enough to see that moment since they are already behind Bitfinex for money laundering [21]. When that moment arrives I am sure that a BIP - Bitcoin Improvement Proposal - will be launched by Blockstream or directly notified of the measure destroying the essence of Bitcoin and the TRUE DECENTRALIZATION: THE PROTOCOL.

This brings us to the second reason for the slowness of Bitcoin. The correct and true decentralization goes through the code and the team of developers and maintainers, not any other. The protocol must be engraved in stone [22] and that the action of the miners distribute and decentralize the network and they maintain the nodes and the transactions in a completely capitalist economic relationship. Investing in machines and communication improves access, speed and spread of transactions and blocks and makes miners true competitors as well as facilitating the transmission of money and all kinds of transactions [22].

The decentralization of the nodes was the other great reason to prevent the increase of the block and therefore the speed in the transaction. It is based on a false premise to base the decentralization of Bitcoin - which is nowhere on the whitepaper - on the raspberry nodes. The dispersion of the transaction and all the stages of the transaction and the blocks depend on the miner and his team, as well as the search for excellence in communications to avoid orphan blocks - which are stipulated in the Nakamoto consensus and are part of Bitcoin and not they throw no problem in the transactions only in the resolution of the reward of the block that affects the miners and should seek greater efficiency - and reorganizations. The audit on the Bitcoin network can be perfectly performed without there being a Bitcoin node in each house, in fact it would cause the same routing problems that occur / will occur in the LN network.

Decentralization should not go through nodes but through developers and to a lesser extent by miners. If a protocol is continually being altered by developers they have the power of the network and it must be in constant struggle by the miners through the commission on transactions.

Due to these two factors, the BIP0101 proposed by the developers that Satoshi left in charge [23] and that originated the creation of Bitcoin Unlimited was rejected, later it was attacked due to its recent creation through DDoS attacks in a statement of intentions of the network Blockstream bitcoin [24] [25] remaining as a residual element.

These two reasons are the cause of the drowning suffered by the Bitcoin network - including many other elements that were eliminated and that corresponded to the initial code completely changing the nature and destiny of Bitcoin that are not relevant and I will not enumerate -, Any other reason is propaganda by those who want to keep Bitcoin drowned in order to enrich themselves with mining sub-subsidies and second-layer software like LN. Bitcoin has a structure similar to gold and can collect certain attributes of it but its destination in efficient and fast transmission as effective - among other transactions.Bitcoin was designed to professionalize miners and create a new industry around them, so mining centers will become datacenters [26] and they will replicate all transaction logs and even this professionalization will eventually lead to specialization in other types of transactions born new industries around you that will support the nodes according to specialization - Data, asset transfers, money, property rights, etc ... -

Bitcoin scales to infinity if they leave the protocol FREE enough to do so.

P.D: Core, since the departure of Hearn and Andersen, they know perfectly well what they are doing: The worst breed from the Cyberpunk movement has been combined with the worst breed of the current synarchy; The ends always touch.

[1] https://np.reddit.com/r/btc/comments/3ygo96/blocks...

[2] https://www.youtube.com/watch?v=ivgxcEOyWNs&featur...

[3] https://www.bitcoinblockhalf.com/

[4] https://petertodd.org/2016/are-wallets-ready-for-r...

[5] https://www.ccn.com/bitcoin-atm-double-spenders-po...

[6] https://bitcointalk.org/index.php?topic=4905430.0

[7]https://www.trustnodes.com/2018/03/26/lightning-ne... || https://www.trustnodes.com/2019/03/13/lightning-ne...

[8] https://diar.co/volume-2-issue-25/

[9] https://blockonomi.com/watchtowers-bitcoin-lightni...

[10] https://twitter.com/starkness/status/6765995708984...

[11] https://store.casa/lightning-node/

[12] https://bitcoin.stackexchange.com/questions/81906/...