Almost 15 years after Bitcoin prompted the digital financial transformation, its understanding is now nestled as sound cash. Following lots of tough forks and designer efforts to modify Bitcoin's core code, the pioneering cryptocurrency picked decentralization and sound reward structure for miners.
Both were crucial for Bitcoin to power through market crashes, media attacks, and federal government efforts to prohibit it. Even with the efficient boost of its block size to 4 MB in 2017 by means of the SegWit upgrade, Bitcoin's larger adoption as everyday currency can not rely on its mainnet:
- Bigger block size would lower deal costs as more deals per block might be processed. This would lead to bigger computing and storage needs, setting off network centralization.
- By the exact same token, bigger block size would increase Bitcoin mainnet throughput above today 7 deals per second. This would reduce costs as network activity (adoption) increases.
To put it simply, Bitcoin's status as decentralized sound cash is innately opposed to its status as smooth currency with minimal deal charges and high tps throughput. This is just real if we focus on Bitcoin's mainnet– the very first network layer.
