How to Scale a Blockchain
Welcome, welcome to One Minute Crypto! I'm your host, Chronos, and today I want to talk about what it really means to scale a blockchain This debate has been raging for years: how can bitcoin be made able to handle more transactions? Most of the argument has revolved around the maximum block size, but I actually think that can be a bit of a distraction
Depending on your perspective, increasing that limit doesn't scale a blockchain at all I know that probably sounds pretty crazy to you, so hear me out Today's episode is sponsored by Americas Cardroom, the most trusted US online poker site Use the bonus code "Chronos" and you'll double your first deposit, and get up to $50 in free cash! Deposit with your favorite cryptos at Americas Cardroom So in order to understand Bitcoin scaling, I want to give you an analogy
Think about this problem: how can we get trucks to safely drive faster? It seems like the top speed for a typical truck is 60 miles per hour, or about 100 kilometers per hour, and it's been that way for decades, so where's the improvement? Here are some ideas that could help: Invent more effective brakes so they can stop more quickly Invent more efficient engines that can accelerate more quickly Invent better autonomous driving so they can better react to dangerous conditions Any of these helps to solve the problem Bringing that back to the blockchain, let's think about how to scale bitcoin to handle more transactions
There are three areas that can act as a bottleneck to scaling: bandwidth for sending and receiving transactions, processing power to validate transactions, and storage space for the blockchain How can we improve these? Technologies like Compact Blocks reduce the bandwidth requirement Schnorr signatures help storage and bandwidth by making signatures smaller, and processing power by allowing signatures to be combined These three areas: bandwidth, processing, and storage, are what we need focus in order to scale Bitcoin But raising the block size limit? In this analogy, that's like increasing the official speed limit for trucks
If you make a law that trucks can now drive at 200 MPH, that doesn't solve anything, because they can't physically do that safely In the same way, today, allowing blocks to be 200 megabytes doesn't solve Bitcoin scaling problems There are real, physical reasons why trucks (and bitcoin) can't operate at that level today, and that's what you need to work on to improve scaling Personally, I think it's possible for bitcoin to carry the entire world's transactions, but to get there, we have a lot of work to do Throw your comments below the video
I'm Chronos Thanks for watching!