Andreas Antonopoulos on Forkology - My take on Segwit2X and Lightning Network

in bitcoin •  16 days ago

We have another fork coming up around Nov 16th which is the latter half of the New York agreement. The first half happened in August and created BCH (Bitcoin Cash) with 8 MB blocks and we had another one just a few days ago with Bitcoin Gold. Now we are getting segregated witness with 2 MB blocks.

It's no surprise that the exchanges such as Coinbase want this increase because they're the ones taking up most of the block space every 10 minutes. The average hodler on the other hand seems to be content with only a few transactions a year.

The reason these forks are happening is because bitcoin is having scaling issues and fees are increasing. Andreas seems to be of the opinion that the best way to scale is off chain (he once said that block sizes would have to be many orders of magnitude larger to match Visa / MC transaction speeds). So what's the alternative? Lightning network.

Lightning network isn't online yet, but when it comes online, the blockchain will be sort of like the court system that settles disputes instead of settling every single transaction. It proposes to settle transactions off chain using multisig and only sending transactions to the block when the channels close. The Lightning Network will be many orders of magnitude faster than the current system of on chain transactions.

In the mean time there's considerable pressure to scale up by increasing block sizes and nobody seems to be in agreement as to how much.

Andreas Antonopoulos said that we're in the early 90's in the development of blockchain technology in relation to the development of the internet. We know what comes next: the search engine wars. We already have a proliferation of altcoins and this trend is likely to continue. I've said before that I think bitcoin is the Yahoo! of finance. As a result I expect to see market cap to distribute more evenly across several of the top altcoins. Eventually one of them will emerge as the next Google of finance.

I don't think we should draw too close an analogy to the search engine proliferation of the 90's and how Google is pretty much among a dozen or so left. There will probably still be thousands of altcoins. Once a dominant one emerges after scaling issues have been fixed, I do expect to see market cap to stop distributing and begin to concentrate into the most universal altcoins.


Donations (public bitcoin address):
donatebitcoin.png
3FwxQsa7gmQ7c1GXJyvDTqmT6CM3mMEgcv


steemit-footer.png


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

hello
To investors in the currency market here are some tips that may avoid you big loss and give you a lot of profit

1 - Avoid margin buying and short selling because the burden of losing it exceeds your capital and lead to bankruptcy if you missed your expectations.
(Do not trust your expectations very much, because they may let you down)
2 - Do not believe the rumors, because the effect is imaginary and not real.
(Rumors of how much money was wasted, and lost of times)

3 - Do not risk everything you own, when you decide to sell or buy.
4 - Do not rely on one income method, invest to create another source of income (do not put eggs in one basket)

This post has received a 0.70 % upvote from @buildawhale thanks to: @zoidsoft. Send at least 1 SBD to @buildawhale with a post link in the memo field for a portion of the next vote.

To support our daily curation initiative, please vote on my owner, @themarkymark, as a Steem Witness

This post has received a 4.62 % upvote from @booster thanks to: @zoidsoft.

This wonderful post has received a bellyrub 6.04 % upvote from @bellyrub. Please make sure to vote for my pops as a witness @zeartul,Here