Bitcoin Cash Terabyte Blocks: Joannes Vermorel’s BCH Scaling Paper?
The new Terabyte blocks have been made to be both economically and technically feasible. With the advantage of allowing more than 50 transactions per person per day, for a cost that is a little less than 1/10th of the USD cent. To know more about the Terabyte blocks read on as we understand it better.
What Is Bitcoin Cash Terabyte Blocks?
Just as it was pointed out in the Bitcoin whitepaper, to take advantage of the large blocks then taking advantage of Moore’s Law is the way to go. Rather than the alternative of being stuck in the fixed capacity device.
The new Terabyte block in the market represents 1e12 bytes, on average this would contain about 4 billion transactions in Bitcoin. So let us assume a population of 10 billion humans then a terabyte block can offer 50 transactions per every human on earth. Actually, it is 57, so definitely this is the way to go.
As we can see having the more significant blocks is definitely the way forward to take advantage of the hashing power that has been invested in the ever-growing Bitcoin network. It provides the needed security no matter what method is used. Be it the 1TB blocks or the 1M blocks as each transaction that takes place has been secured with a million times less effort per every transaction.
The Terabyte Block Mining Rig
The rig has been designed with a combination of proven and existing software and hardware technologies. It has been designed to process the needed data capacity to process the required terabyte blocks. You might be wondering about the cost; the good news is the cost associated with this is significantly low.
It is all in the name of ensuring there is a healthy decentralized market that has various independent miners present. It could be a more decentralized market than the present Bitcoin mining that is present today.
Financing The Terabytes
The prices in the mining rig have been obtained from various public sources to ensure best prices for its miners. But can the market fund this mining rig sustainably? As it would not make any financial sense for such a rig to be developed if it cannot be sustainably financed.
Let’s assume the 10 billion humans present on earth contribute the 1/10th of the USD cent per day to fund the miners; this is through the transaction fees. Then the yearly transactions would amount to about 3,65 billion USD. This means that these transaction fees will be able to cover the amortized cost for the mining rigs.
Even if we assume that the miners would want to get a little extra profit that is beyond the marginal cost of operation in the rig this could work. Having a gross operating cost of about 60% will still leave sufficient room for the over 1000 miners.
Bitcoin Cash Terabyte Blocks Final Thoughts
As we have seen it is definitely possible to finance the mining rig of the terabyte blocks, then this is the way to go. It is true there are several costs present that create the barrier to entry, but mining of cryptocurrencies has still been a highly specialized business having several entry barriers the past year. For the essential miners, or the nodes that do not add any mine blocks they virtually do not add enough security to the network.
Therefore, the only option that is present to decentralize the ever-growing Bitcoin market further is not for us to wish for the miners to downsize, but rather, go ahead and organize a massive expansion in the mining pie. As a result, this will reasonably shrink each miner.