There seems to be something to do about blocksize, should it be gigantic? Even mister Satoshi himself got involved again. Allthough that is subject of discussion inside the world of BiTCoin. Some were even asking to shut him up. Even if it seemed very likely that is was indeed the creator of BiTCoin himself. Now why should the developers listen to him right? Or should they, because he is making a legit point?
It started to go in a direction of spliting up BTC when a group developers started to try to get mainstream acceptance. In some way this would make BiTCoin about the same thing as fiat money. As a virtual version of it. That is a big deal, because at a certain point it would get regulated by law and taxed the next moment. Also Banks could have a real go at it. And major corporations too.
Now, mister Nakamoto Satoshi would have to step in, because, as far as it can be understood, this was the opposite of why BiTCoin was created.
Blocksize blowing things up
More transactions in one block, so the maximum blocksize would have to change. It could be raised a little, with say 24K, so all peers could still take part to crypto fiat transactions into the blockchain. The problem is that when the maximum blocksize goes towards 8M less peers will be able to join in and secure the blockchain with their crypto fiat. Why? Because of the size of every block involved into the calculation. And what to think of the data that has to be send over the p2p constructed network? With 8 MegaByte per block that might become a bottleneck.
The power of handling BiTCoin will get in fewer ‘hands’. So it gets a kind of elite. One more thing mister Nakamoto Satoshi did seem to dislike. By the people, for the people, decentralized all the way, liberty through equal value. And this might lead to new involvement by alternative crypto fiat blockchain systems. Or altcoins to rise to a new level, disconnecting them from this downfall caused by BiTCoin ‘XL’. But then there is the difficulty thing…
Difficulty gets Blockchains stuck
Slick dot CF is trying to get one of those little engines that could going on steady. Slothcoin is one of the crypto fiat blockchains that is still growing without too much of making a fuzz about it. No marketing with shouting or pump and dump strategy. It is really going sloth all the way. But during coding and testing the new build some hickup appeared. And that all went down to the difficulty level that rises when more hashing power is thrown in, but gets stuck after this goes down.
This is not specific for Slothcoin. And it could be stated that peers that mine this Keccak (aka SHA3) coin will be needed. So it is not a flaw in design, but a shortage in mining support. There have been ideas to fix this. So the transactions get keeping crypto fiats and get into the blockchain even with low peer count. But wouldn’t adjusting the difficulty algorithym lead to more blocks that never get a crypto fiat? More traffic of useless data in the p2p network. Calculation power thrown away, just to change difficulty faster and keep the blockchain at speed?
It needs a lot of time, or hashing power, to get the blockchain going again. It can be stuck for half a day, or more. But this might raise the question if a virtual coin has a right to excist, if it gets stuck anyway because of the lack of support through mining. Sloth is still going steady as it goes, but is in need of a code change soon. Otherwise somewhere at block 400K it will go into negative values. (At least that is the theory.)
Need of change
Difficulty that gets stuck at a high value is one of those things that might destroy a virtual coin, like Sloth. And further investigating this fenomena is legit. Allthough the innitial blockchain idea was not to get it fast and big. It might be ready to evolve more. Think about the size of some blockchains for instance and how light wallets seem to work too. Or how easy fiat money still is, but that is controled by centralized powers and devaluates because of endless creation of more from air. And even eating more intrensic value by putting interest on it.
Now a next step in the progression of virtual digital money could be found in replacement of fiat money, controled by governments, multinationals and banks. Where it should have a maximum in the amount and interest could not happen, without allready being inside the total amount of money available. Because creation of money by interest is the path to economic crisis. Inflation and devaluation are all part of the problem.
The future of decentralized virtual digital money is where it can be exchanged directly without control, just the way fiat money is now. The coins and bills, that is. But that would mean the virtual digital money would be unique and proven to be so. There lies the challenge, because one day the blockchain will be to big to handle. And the transaction blocks will take to long to crypto fiat.
But until then, may the Sloth be with you!