Why I spun up another Bitcoin Unlimited node and why you should care

Here in Blacksburg VA, a new Bitcoin full node is up and running. My node is running Bitcoin Unlimited and in this post, I will outline why this matters to you: a Bitcoin user.

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My node

My node is running on a simple machine with a 3rd-generation Intel Core-i5 and 8 GB of ram. The full blockchain is about 80 GB so my cheap 500 GB HDD will serve very well. Now, this node does not do any of the mining for the network; this node provides the information that wallets and any other bitcoin clients need to download to independently verify the blockchain. By running a node, you are contributing to the decentralization of the network by allowing everyone to maintain their independent records.

If you want to see how to get a bitcoin node running on your machine check out this post for a good guide. Make sure to download your client from Bitcoin Unlimited (they also provide installation guides). The most important part if you want your node to contribute to the network, is to forward your ports from your router. This is explained in detail in the guide but don't hesitate to comment any questions!

What does Bitcoin Unlimited stand for?

The Bitcoin Unlimited project describes itself as an attempt to give a voice to all stakeholders in the network, especially when it comes to network limits like the block size. To quote from the Bitcoin Unlimited website:

Every node operator or miner can currently choose their own blocksize limit by modifying their client. Bitcoin Unlimited makes the process easier by providing a configurable option for the accepted and generated blocksize via a GUI menu. Bitcoin Unlimited further provides a user-configurable failsafe setting allowing you to accept a block larger than your maximum accepted blocksize if it reaches a certain number of blocks deep in the chain.
By moving the blocksize limit from the protocol layer to the transport layer, Bitcoin Unlimited removes the only point of central control in the Bitcoin economy - the blocksize limit - and returns it to the nodes and the miners.

Bitcoin Unlimited is the embodiment of user choice on the bitcoin network. Bitcoin was designed to be whatever the users defined in the code they run and vote for with their hashpower. Running an Unlimited node supports the community of users who see the utility of Bitcoin unhindered by the temporary block size limit. By running Bitcoin Unlimited, should larger blocks be mined, my nodes will continue to propagate consensus with the community and avoid any fork.

In his creation, Satoshi made it clear that the block size limit was meant to be temporary and a free market would arise at a later point. Bitcoin Unlimited recognizes this aspect and details in this paper how a fee market exists without a blocksize limit.

The eventual solution will be not to care how big [the block size] gets.
-Satoshi Nakamoto (Bitcoin creator)

You can learn more about what the Bitcoin Unlimited implementation stands for you can read their Articles of Federation or visit their website.

my cheap node can handle much larger blocks

The point I wish to make here is my inexpensive node could readily handle much larger blocks today. The fact that blocks are full today and this limit is still in place is absurd. Take the following quote from Satoshi during the early days of Bitcoin describing how the advances in the future can adapt to the network.

If the network were to get that big, it would take several years, and by then, sending 2 HD movies over the Internet would probably not seem like a big deal.
-Satoshi Nakamoto

Yes, in the early days of Bitcoin 100 GB of blockchain data seemed like a lot. Today you can fit ten times that on a tiny microSD card. Keeping the blockchain at a size that is accessible to all users is important for ensuring the decentralization of the network. Today however, that size is much larger than when bitcoin was created and the network needs to adjust accordingly.

Why you should care as a Bitcoin user

At the moment, bitcoin blocks are full and users are expected to use a fee of around 40 cents to have their transaction included in the next block. Fees this high are outrageous for a technology that was designed to be the internet of money; allowing for essentially free micro transactions to everyone in the world much like the internet does for data. Bitcoin today is not the internet of money. It is simply a useful and decentralized settlement layer.

Yes, fees are meant to be a large part of the bitcoin network economics and future mining incentives. In fact, the block reward will eventually be nothing and the entire incentive of mining will be transaction fees. However by the time that happens (and conditional on an unhindered block size), you can imagine tens of thousands of transactions every second, each paying a minimal fee. This is the Bitcoin that Satoshi envisioned; a true internet of money. If this is the Bitcoin you want, Bitcoin Unlimited is supporting that vision.

If you want a Bitcoin that can become the decentralized money for the world then you should care about the block size debate.

the conspiracy in Blockstream and why this is a problem in the first place

If a block size increase is so obvious to the utility and future of Bitcoin, why is there a debate?

• Another bitcoin implementation, historically the most popular, Bitcoin Core, has many developers who work for a for-profit company called Blockstream.
• Blockstream is working on solutions to the scalability of the bitcoin network in the form of layers built on top of the bitcoin network (sidechains). Blockstream's business model centers heavily on the use of these sidechains.
• These second-layer solutions are needed when the main-chain blocks are unable to accommodate all transactions.
• With the Bitcoin Core client not supporting variable block sizes but rather fixes that enable these second-layer solutions it is clear why some feel that interests may not be safely aligned with the community.

This is not meant to be a post on the history of Blockstream and their potential intentions, you should do your own research there. Nor is this meant to criticize second-layers; to be honest, many of these solutions are necessary for the future scalability and usability of Bitcoin and are really cool; see Lightning Network. This is meant to cast light on to bitcoin users ability to choose the software they run. The Blockstream-influenced Bitcoin Core client does not support the elements of Bitcoin that I agree with. Therefore, I run a node that supports the consensus that I agree with.

If you want to read more about Blockstream, this post does a good job highlighting some issues.

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Stay decentralized,
-Kyle

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