Craig Wright Gives Blockchain Brain Dump on Why On-Chain Bitcoin Scaling Works
Does Scaling on Side-Chain Work? The Answer is Yes
It's a question that has frequently come up in discussions among the blockchain community, that being if scaling is something that, firstly, Side-chains can handle, and two, if scaling on side-chains does work? And the answer is yes. And when it comes to that answer, this article is here to summarize why it works.
In 2009, one of the limits that software experienced was 32 MB, but this was simply due to the limits of the software. For the needs of an ordinary commercial server, this wouldn't effectively be an issue. Through this piece, we will be addressing this within the realm of the demands coming from a commercial server, meaning that other nodes will not be a talking point within this piece.
As a starting point, one of the reasons that many people think that Bitcoin cannot scale on chain is down to the data, and its ability to grow exponentially. Generally, this ignores that while data is in a constant state of growth, the amount of available storage increases far faster than Moore's law, and, as a result, required storage.
Taking this into a more detailed view, the table demonstrates an exceptional rate of growth in terms of existing data, but what is demonstable through both the lower and upper graph, is that data creation is accelerating, with 2026-2030 representing the first exponential increases, with the amount of data being produced going vertical by 2040-45.
From these diagrams, we can see that, in order to effectively scale Bitcoin, there need to be more than 500 Terabytes serving specifically as the blockchain storage by 2030.
It's because of these same statistics that many erroneously state that Bitcoin simply cannot scale. As a rebuttal to these same people, it's very possible to match up to these existing trends.
From what we've previously spoken about, this is a more visual demonstration of what aggressive block increase can look like. We simply remove this cap and aim to ensure that all the data we can fit on the BCH blockchain, can.
This is, by no small measure, a push to use and an exponential average block use increase, but possible.
Generally, this would be towards a broader goal of having 5 TB of more sent in peak times of activity by the year 2030. Put in more simple terms, Bitcoin Cash has all of the potential to handle up to 1.25 TB blocks by the conclusion of 2021.
Now, this seems like a truly insane and massive figure to start off, but if you take time to consider this against the annual growth that takes place with regards to technology and hardware in the first place, it becomes far less insane.
For example, if we were to take the fact that average storage per USD has been increasing to the point of being doubled every 15 months, and when we take that into consideration against 2009 standards, we would be at 8 GB as an accepted block limit (If there was an imposed limit and that is something we shouldn't be aiming to impose).
This scaling plan would entail a push for an increase to the size of the blockchain noted above. However, when we take this in 2009 terms, the view is considerably different.
So what does this demonstrate? That it's a fallacy to believe that Bitcoin doesn't scale.
So, should there be a start to this plan right now when it comes to more hard drive storage than we require (and this is minimal) it should be able to scale in a manner that converges to allow 50% spare storage at a relative cost.
We take the following as out table of growth (where each period is the doubling time of 15 months):
One of the realities is that scaling on chain is far cheaper and much more straight forward than anyone cares to admit or observe. There is nothing really special to be done in order to accomplish this, it is simply allowing commercial systems and allowing them to compete and remove this false idea that Home use and hobby-ist nodes need to be subsidized
Bitcoin can and does scale.