After Bitcoin (BCH SV) successfully mined a record-setting 64mb block (an hour after a record-setting 38MB block) in the past couple of days, the bComm Association has released its scaling plan – 512gb blocks in six months, 1gb blocks in 12 months – raising block cap limits to 512 MB in six months, and 1 GB in 12 months –which will eventually lead to complete removal of default block size limits in the future.
The planned numbers would mean the capabilities of the network go far beyond what’s required today, amply preparing the network for future demands. A 512MB block limit would allow up to 2,000 transactions per second (TPS) – more than Ripple, Ethereum, BTC and all other blockchains, and even PayPal. It’s worth noting Ripple can settle 1,500 TPS in a lab but only 175 TPS in the wild.
When the network eventually scales to 2GB size block capacity, that’s 8,000 TPS, which will put it on par with the global Visa network.
Big blocks mean big business, as the ability to handle such a large volume of transactions combined, and means the network would be able to handle all global payment card traffic on the blockchain for a fraction of what it costs now with legacy technology. Furthermore, big blocks are crucial to provide capacity for more complex transaction types – such as token and smart contract transactions – that require more data size than a simple payment. With the new Tokenized solution coming on the scene, bigger blocks will enable major enterprises across the world to do tokens at scale.
With the Bitcoin block reward scheduled to halve in the two years (from 12.5 to 6.25 coins), miners will need to earn more in transaction fees to remain profitable. Complex transaction types that require more data will help miners earn more transactions, to make up for the reduced 6.25 block reward.
As Dr. Craig S. Wright explained in his talk at our November 2 miners’ summit in Hong Kong, companies are paying an average of $3.20 for an Electronic Data Interchange (EDI) transaction. Wal-Mart is currently doing $1.4 trillion in EDI transactions globally; when it and other global businesses realize they can do these for just half a cent, the Bitcoin SV implementation designed for massive on-chain scaling will be ready to handle them. (Watch the entirety of Dr. Wright’s presentation at the bottom of the page.)
Bitcoin mining rig manufacturers and miners would be wise to support Bitcoin SV’s scaling plan. Without higher transaction volumes and more transaction fees, miners will risk unprofitability, forcing businesses to make tough decisions on whether to mine at a loss because of ideology or close up shop. Anyone who has run a business knows, it’s not about charity, it’s about revenue and profits.
CoinGeek founder Calvin Ayre said, “The current bComm Association scaling plan has my full support both ideologically and financially as it’s the best path forward to maximize miner revenue and create sound money with enterprise scaling for the world.”
The ABC development group has worked to make the current hash battle a fight about personalities against Craig Wright, taking an emotional stance of “I don’t like that guy, so I’m not backing that guy.” Such attacks are reminiscent of American politics: if one politician is wearing a red tie, everyone wearing a blue tie must disagree with their plans, even if they’re the most sensible solutions. It doesn’t work in politics, and it’s of absolutely no use in the business community.
People may not like Dr. Wright’s politically incorrect delivery but he’s singularly focused on one goal: it’s to fulfill the exact vision of the Bitcoin whitepaper, and not radically change anything in Bitcoin’s original design. He wants massive on-chain scaling and transaction volume for Bitcoin, and as we’re seeing more and more each day, there are plenty of others – investors, miners, developers and consumers – who want the same thing.
For CoinGeek, nChain and everyone associated with the Bitcoin (BCH SV) project, it’s always been about making a sound technical choice, and we believe time will prove us correct. When that happens, we’ll welcome those who want the same thing – Sound money for the globe.
Please enjoy Dr. Wright’s talk from the Hong Kong Miner’s summit back on November 2, 2018.
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