Segwit+bech32+batching+others will lead to bitcoin reaching/passing ethereum on chain tps level

in #bitcoin6 years ago

Segwit! The thing needed for LN to occur. While LN is almost ready for full time use. We need fees to low right now so bitcoin can be loaded onto the LN. Segwit some what fixes that as well. Segwit is like a soft fork small block increase.
Segwit will get 2mb block if 80% of all transactions use segwit.
Read more about how it a big block increase:

How segwit is actually a big block increase= https://steemit.com/bitcoin/@sames/how-segwit-is-actually-a-big-block-increase

Bitcoin at current level can do 4-7 transaction a second. Let say 5.
5 tps is sad....
Visa does 2000-60K tps. Ouch.
Ethereum is no better.
Eth at max at current stage can do 20 tps.
Not much better. :(

Bitcoin with segwit will double that leading to: 10 tps
Not there yet ouch.
With bech32

https://steemit.com/bitcoin/@sames/bitcoin-newest-scaling-method-adding-bech32-plus-others )

Bech32 is segwit but 20% better.
So i say it increases bitcoin 2.2x
So meaning bitcoin does 11 tps. Yeah um it getting better!!

Batching does not directly increase bitcoin tps. but it reduces stress.
1 output=1 output right?
In bitcoin you can combine a bunch of input in one output.
Say 100-200 output to 1 output. Instead of performing separate transactions you combine alot the transaction and do it one time. In the blockchain, one batched transaction has the same weight as a single output transaction.
This would decrease fees significantly. Say their 1Million single output transactions in bitcoin right now.
Let say 60% of it can from exchanges/ business sending out payments which are not batched which would mean 600K single transactions can be batched. Assuming 80% of all of the single output transaction were already using segwit bech32 = 2mb blocks
1mill*.8=800K
200K are not segwit bech32 :(
With only 80% using segwit bech 32:
let's assume 9 tps happen
There are 86400 second in a day.
9 times 86400=777600 Tx
Hey that better than the record transactions bitcoin made with segwit: 226,968Tx
Anyway let continue in our calculations.
So 777600 Tx can happen in one day now with segwit bech32.
As you see bitcoin can't handle it yet. It would take bitcoin more than one day to process all these Tx.
But incoming batching!!!
Assuming 60% of it can from exchanges/ business sending out payments which are not batched which would mean 600K single output transactions can be batched.
Looking at you coinbase

Read more about coinbase batching will make bitcoin fees cheaper: https://steemit.com/bitcoin/@sames/how-bitcoin-fees-will-get-cheaper-with-out-a-block-increase

So let say the exchanges batch at least 15 single transactions into one output aka batched transaction.
600,000/15= 40000 batched transaction which look like one single output transaction but it isn't. :)

So what do we have now:
Not batched or Non segwit transactions= 400,000 single output transactions.
Batched transactions now= 40000
320,000+32000= 440000 transaction
Remember:
777600 single output Tx in one day. Bitcoin can now process "a million transactions" using the power of batching.

However that is not the only tech bitcoin is planning on adding. Bitcoin believes finding a way to increase transaction without big block increase.
One of these ways is schoor signature:
What is Schoor signatures= https://steemit.com/bitcoin/@tipu/the-next-big-thing-in-bitcoin-network-schnorr-signatures or https://medium.com/@SDWouters/why-schnorr-signatures-will-help-solve-2-of-bitcoins-biggest-problems-today-9b7718e7861c
or https://bitcoinmagazine.com/articles/the-power-of-schnorr-the-signature-algorithm-to-increase-bitcoin-s-scale-and-privacy-1460642496/

According to the developers this reduces the storage and bandwidth usage by at least 25%.

Bitcoin Core developer Eric Lombrozo suggest that Schnorr signatures could eventually increase total capacity 40 percent or more

So i taking his word into account!!! :)
**So anyway, schoor signature needs segwit to work. **Segwit is now active on bitcoin. Schoor signature is still in testing and will come out in 2 or less years :(
But let me tell you of the tech anyway.
So as you now segwit bech 32 gives= 2.2 scaling
Schoor will give and extra 0.4x
2.2+0.4=2.60
5 tps * 2.60= 13 tps
while using 2mb blocks :)

**Keynote: Segwit can reach up to 4 mb block but that would be near impossible...
Segwit with 80% usage will give constant 2 mb blocks. At chance 1 out of 10000 block might be maybe 2.5-3mb. If it were to reach that. Bitcoin could do temporarily ( if including schoor)= 3.6 scaling so 18 tps. Almost to eth level!

There is one more tech that will also lead bitcoin to have more tps. Bullet proof. No lie it called bulletproofs so....

“If all Bitcoin transactions were confidential and used Bulletproofs, then the total size of the blockchain would be only 17 GB, compared to 160 GB with the currently used proofs,” authors Benedikt Bünz, Jonathan Bootle, Dan Boneh, Andrew Poelstra, Pieter Wiulle, Greg Maxwell insist. Stanford's Applied ...
Source: https://thebitcoinnews.com/stanfords-applied-cryptography-group-aims-to-bulletproof-bitcoin/

Bulletproofs shrink the size of the cryptographic proof from over 10kB to less than 1kB,” they claim.

This however is coming sooner! Monero is releasing it this year if all goes well. If it works expect in on bitcoin in 6 months later :)

Which would mean bitcoin will get a 5x improvement according to redditors to lazy to calculate myself :)
Source: https://www.reddit.com/r/Bitcoin/comments/7cs1zc/bulletproofs_a_radical_improvement_in_the/?st=je3icp4r&sh=9fbfbc98

This is kinda offchain/onchain so BCH won't be adding this, all transaction need to be on the ledger right ;). BCH has graphene and big block for speed and Cash shuffle to cover privacy

So with this new tech coming really soon in bitcoin years

Let me calculate transaction per second for the really soon part aka not including schoor in the picture :(
Bech32 is segwit but 20% better.
So i say it increases bitcoin 2.2x
With bullet proof which is a roughly meaning it could be way more than 5x scale but let's say it is a 5x scale without increasing the blocks and less bandwidth
*5+2.2=7.2
7.2 times 5 tps=36 tps

**Knowing it going to be a soft fork i say with bullet proof it shall bring bitcoin to 24 tps soon **

With schoor signatures bitcoin will scale a little more but..... it going to take 2 years.
But when added
5x-bullet proof
2.2-segwit bech32
0.4 schoor
5+2.2+0.4= 7.6
5 tps times 7.6=39 tps since it going schoor is going to be a soft fork= I estimate 30 tps will be the reality.

Remember me saying that Segwit can reach up to 4 mb block but that would be near impossible...
Segwit with 80% usage will give constant 2 mb blocks. At chance 1 out of 10000 block might be maybe 2.5-3mb. If it were to reach that. Bitcoin could do temporarily ( if including schoor+ Bulletproofs)= 8.6 scaling so 43 tps. Passed eth on chain level!

However these are not the true goal of bitcoin scaling!!!

The Lightning Network is the end goal. Making on chain transaction cheaper makes LN even cheaper.

If you want to learn about the Lightning network( LN for shot) here it is:
This is a really good video explation: https://steemit.com/bitcoin/@ddangerwu/understanding-lightning-in-simple-terms-and-what-it-means-for-you-get-100sp-delegated-to-you
"Mine"= https://steemit.com/bitcoin/@sames/bitcoin-s-lightning-network-simply-explained
99 bitcoin explanation: https://99bitcoins.com/what-is-the-bitcoin-lightning-network-a-beginners-explanation/
LN nodes are NOT banks or like banks= https://steemit.com/bitcoin/@sames/ln-nodes-are-not-banks-or-like-banks

Plus bitcoin has it's own ethereum killer without using any of the main bitcoin chain resources=
https://steemit.com/bitcoin/@sames/bitcoin-s-ethereum-killer-rsk-co

Please tell me if i made an error in my math/info :)

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