You’ve probably heard a lot about the different (and rival) proposals to scale Bitcoin. But can you explain why Bitcoin needs a scaling solution in the first place? Developer and professor Nikita Zhavoronkov puts it in simple terms to set the stage for other conference speakers.
Zhavoronkov: Bitcoin Can’t Compete With Other Payment Networks
Zhavoronkov simplifies the issue by comparing Bitcoin to a bus with limited capacity and too many passengers. Soon they start bidding to pay extra for tickets — and that’s what happens to Bitcoin transaction fees when blocks are full.
Using average sizes, Bitcoin can currently handle about 2,000 transactions every ten minutes — or 3.33 per second. That’s a lot less than VISA’s 56,000 and PayPal’s 500. Unlike Bitcoin, the latter two are able to increase capacity at peak periods like Black Friday.
Average Bitcoin transaction fees went from two cents in 2015 to $2 in 2017 — but low fees are one of Bitcoin’s main selling points. If if can’t scale, users may choose to pay with other cryptocurrencies in the future. Find out more by watching the whole video:
Zhavoronkov is CEO and Engineering Lead at Blockchair, an analytics and search engine company that “aims to become a Google for blockchains”. He also teaches a course on blockchain and cryptocurrency at the National Research Nuclear University (MEPhI) in Moscow.
About The Future of Bitcoin 2017
The Future of Bitcoin conference took place in June-July 2017 in Arnhem, Netherlands. Presenting at the event were several high profile individuals who will be making key decisions about what Bitcoin is, and how it works, in the years to come.
This is a comprehensive video series featuring all the speakers and panels from the 2017. event. Watch them for a direct insight into the minds engaged in research and development to keep Bitcoin disruptive, decentralized, global and permissionless.
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