In the midst of the remarkable ups and downs of Bitcoin and Bitcoin Cash in terms of costs, the debate is increasingly interesting within the community to the electronic currencies, with countless personalities who step up to issue their position. In fact, one of the latest developments in the field has been starring Adam Back, the developer behind HashCash – the proposal designed in 1997 to combat spam mail, which would later be rescued by Bitcoin – which was cited in the original work of Satoshi Nakamoto. And is that the programmer said that Bitcoin has an advantage over Bitcoin Cash in terms of scalability, due to its infrastructure for payment channels.
In the words of Back:
“SegWit is an error correction to allow a massive scale in the second layer, and Bitcoin Cash intentionally eliminated the error correction … Bitcoin will be fine and will scale beyond Bitcoin Cash, because BCH does not have SegWit and can only wait and wait. It is a time bomb”.
To give context to the statements – and the situation around the original currency and the bifurcated currency – it is important to point out the position issued by Andreas Antonopoulos, security professional, and Bitcoin … The expert pointed out that, if the size of the Bitcoin block increases At a rate directly proportional to the growth of its user base, the centralization of the Blockchain network will be inevitable. Below, the opinion of Antonopoulos:
“If it takes 11 minutes for my block to validate, then I’m out of the blockchain and that means that fewer people can validate independently, so the system is centralized; that is, fewer users can participate in the validation process, fewer people can participate in the storage of the data and fewer people can become involved as independent actors. We are moving from a decentralized system to one that is becoming increasingly centralized.”
The message is clear: an increase in block size, although it may be viable as a scalability solution in the short term, it is not if we think about the complete image. It is worth remembering that, in Bitcoin, thanks to the lack of a centralized entity or network administrators, the operators of nodes and miners verify and confirm the transactions independently. However, a severe increase in the size of the block could restrict the ability of node operators to verify transactions. Companies must take advantage of Bitcoin’s high level of security and move small transactions with lower fees to second-tier payment channels such as Lightning, since they can allow the network to reach the capacity of major financial settlement platforms, such as Visa and Mastercard.
Eduardo Gómez is a Venezuelan freelance writer and Information’s Technology Professional. He discovered Bitcoin in 2012 and has been drawn to it ever since. He also works as a Customer Support Agent at the San Francisco-based Bitcoin startup Purse.io