Craig Wright aka Faketoshi, a strong believer of the Bitcoin Satoshi’s Vision implementation for the Bitcoin Cash [BCH] blockchain, recently appeared on a video hosted by Tone Vays, a Bitcoin proponent, to speak about the upcoming hard fork, which is scheduled on November 15, 2018.
Wright started off by speaking about block size. He remarked that there should not be a block size and that the original version of Bitcoin also does not have a block size. He went on to say that Bitcoin did not have an economic value in its initial stages. Wright said:
“It was added as a temporary measure only because there was no economics in Bitcoin. You couldn’t even buy two pizzas with 50,000 Bitcoin at that stage, really, I mean there were occasional exchanges of silly things like that but the reality was there was no economic value to Bitcoin”
He continued to say that this is actually an attempt to change the protocol. Wright further spoke about the opcode the Bitcoin ABC team wants to add, OP_CHECKDATASIGVERIFY [DSV].
The self-proclaimed Satoshi Nakamoto said:
“If you consider the things like DSV and whatever else, is not part of Bitcoin and everything that we’re doing is the original Bitcoin re-enabled. That’s the distinction. So the difference they want in saying that DSV should be there, is the addition of something that changes Bitcoin from effectively something that is legal in every single country on earth contrary what you see in the press”
Wright added that there has not been any country which has had “Bitcoin illegal ever”. According to him, DSV alters everything and would create a bucket shop. He went on to say:
“Now, that creates a bucket shop, is what it’s known under law. It was actually first taken up in the Supreme Court in the US in 1906. It’s an illegal derivative trading for our platform and we just saw finally a DEX being shut down by the SEC and others will.
Wright stated that people do not understand that Bitcoin is a settlement engine, the central nodes, the miners are settlement and that P2P means that two people transact together, without any machine. He said:
“P2P means you and I transact together now this idea of it’s decentralized trade, you and I transact together there’s no machine here so there’s always a person involved and as soon as you do that, you alter the nature of the system it’s no longer fungible because fungibility is not a technical issue it is a legal issue.”
He continued to say that once there is any transaction which contains the DSV, it would be a breach of the law. This would effectively mean that it will no longer be valid in America, UK, China and other countries, he added. Moreover, people will not be allowed to carry this forward without being registered and a miner will have to break the law in order to valid a transaction.
Wright further added:
“it’s different to something in script where someone can script a code and link to an external server that’s completely and utterly different. So there is a difference between building something into a software platform or having a code language that allows you to build something and people don’t seem to get this differentiation.”
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BSV STN is mining 1.4-gigabyte blocks; Is this a scaling solution or a journey towards centralization?
Bitcoin SV, the fork of Bitcoin Cash, has set up an STN [Scaling Test Network], specifically intended to test on-chain scaling for large blocks, which also acts as a standard network in the latest update of Bitcoin SV. It was noted that the STN was mining blocks that were more than 1 GB in block size, a development that was celebrated in the BSV camp after a Twitter user, @two2wheel2life, tweeted,
So the #BSV test network mined 6 blocks over 1GB 👀
Two of them were 1.4GB & one of these contained 359,793 transactions! Check out https://t.co/tArDkAwpFR
Just wait until this is happening on main net! 🙂
Are you paying attention yet??#BSV is #Bitcoin #CraigisSatoshi
— Conor McGee – $two2wheel2life (@two2wheel2life) May 22, 2019
BSV has a total of four such networks defined, i.e., Mainnet, testnet, regtest, and STN. According to the website, STN was implemented to reduce the impact of scalability testing on testnet and to preserve testnet as a network for testing of applications built on top of Bitcoin SV, without requiring testnet users to make significant hardware available.
Block 11891 on the STN was 0.95 GB in size and processed a total of 9530 transactions in the block. Block 11901 was 1 GB in size, and block 11902 was 1.4 GB in size, which could possibly be the biggest block mined on the STN.
Is Bigger Better?
The question of bigger block sizes has sparked quite a few debates, be it Bitcoin, Bitcoin Cash, or Bitcoin SV. It was one of the reasons why Bitcoin Cash forked from Bitcoin and why Bitcoin SV forked from Bitcoin Cash.
However, does massive block size really solve the scaling problem without any drawbacks? The Operations Manager of STN, Brad Kristensen, had some interesting things to say to AMBCrypto about the recent achievements of the STN.
“We’re very pleased with the results, and I think it’s a strong signal of what is to come from Bitcoin SV on mainnet as we continue to increase adoption. The STN is running the same public release available right now (0.2.0). Anyone can join the STN to test their applications /services.”
According to BSV’s roadmap, the first upgrade for the project will be ‘Quasar,’ which is proposed for July 24, 2019, and will concentrate on scaling by increasing the default block size hard cap.
Centralization or scaling?
Andreas Antonopoulos, a prominent Bitcoin advocate, had a different opinion on the rise in block size for Bitcoin SV. When AMBCrypto reached out to him, he commented,
“Large blocks have a centralizing effect on mining and node operators. It is unlikely that the main BTC chain will increase the blocksize as it has taken a different path for scaling, via layer-2 payment channels (Lightning Network) and on-chain optimizations (Segwit, Schnorr etc.).”
As stated by Antonopoulos at the ‘Bitcoins in Bali’ meetup on June 27, 2017, if the block size is increased in orders of magnitude at a rate that is proportional to the increase in user base, a difficult problem will emerge wherein Bitcoin transitions from a decentralized to a centralized system.
Additionally, Antonopoulos said,
“If my block takes 11 minutes to validate, then i’m off the blockchain, which means fewer people can validate independently, which means the system becomes centralized. With which one of these increases, fewer people can participate in the validation process, fewer people can participate in storing the data, and fewer people can participate in being independent actors. We go from a system that is decentralized to a system that gradually gets more and more centralized.”
The above gives a clear idea of what could happen if the block size increases. However, Craig Wright announced in one of his Medium articles of his plans to increase the block size, giving his opinion on the same,
“The reality is that scaling on-chain is much simpler than anyone likes to admit. There is nothing special to be done in order to achieve this, it is just allowing commercial systems to compete and to remove the false idea that home use and hobby nodes need to be subsidized”
So, how will BSV fare? Will it still be successful after implementing larger blocksize or will it accept the centralization that comes with increased block sizes? Only time will tell.
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