The key to scaling Bitcoin

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Bitcoin, so all blockchains will not expand. This is based on the fundamental limitations of blockchain systems that cannot facilitate transaction use on a truly global scale without the need to sacrifice decentralization and verification capabilities, thus making them valuable in the first place.

This is an existing problem that Bitcoin has solved since Bitcoin started. Here is a comment from Canadian Cypherpunk James A. Donald, who is the first to reply to Satoshi’s original post on his password mailing list:

Satoshi Nakamoto wrote:

“The bandwidth may not be as exciting as you
think. A typical transaction is about 400 bytes
(ECC is very compact). Each transaction must be
Played twice, so it can be said that each transaction is 1KB.
Visa processed 37 billion transactions in fiscal 2008, or
On average, $100 million in transactions per day. That
Many transactions will require 100GB of bandwidth, or
12 dvd or 2 HD quality movie sizes, or
Current price is $18 for bandwidth. ”

The problem is, you are comparing with your bank card
network.

But new currencies cannot compete directly with old currencies
Because the network effect prefers the old.

You have to go to a place where your bank card doesn’t go.

Currently, file sharing works are barmonetized. this,
However, the double coincidence of desire is needed. people
Only upload the files they are downloading once
Download is completed, stop sowing. Therefore only active
Files, files that many people want
Time available.

File sharing requires very cheap transactions.
How many transactions per person per second, every day,
Go out one day, the monthly transaction cost is very small
Each client, so to support file sharing on Bitcoin, we
Will need a layer of account money
Bitcoin supports one hundred transactions
One thousandth of the size of a coin and support
Anonymous, Chaumian Money is on top of the account money.

Let’s call Bitcoin Bank a bent over. Bitcoin Site
The same relationship with money standing on gold
The golden standard day. Bending, distrust
When fluidity is most needed, each other is liquid,
pass
Coins per 100,000 mobile drill bits
For a few seconds or so bitcoin won’t change owners
Typically, most transactions are canceled in the account
grade. Binks only need each other’s bitcoins
Because they don’t want to hold account money either
Long. So there is relatively little bitcoin
Few transactions can support larger ones
The amount of the account that is frequently traded.

Despite the naive assumptions of wartime, large blockers, and many early bitcoinists, which simply raise the blockade as a viable solution to extend the system, it is understood from the very beginning by reasonable observers and engineers that from the very beginning, this will undermine the core value proposition that makes it useful in the first place. Hal Finney also talked about the need for such a settlement layer at the top.

In the long run, scaling up levels has been the only reasonable plan to make Bitcoin work, but for a long time, how Bitcoin’s early history does so without relying on trusted third parties has been an elusive question.

One of the first ideas on how to do this is Sidechains, a standalone blockchain with nails to facilitate the use of Bitcoin on Mainchain to take advantage of leverage on Sidechain and at any time, move toward Bitcoin by unlocking funds on Mainchain by legitimate control over it. However, these systems have not yet reached a way to operate PEG, and don’t) introduce some form of trusted third parties, regardless of their mitigation, or 2) create concentrated pressure on the main Bitcoin network.

From those early on, more ideas have been proposed that have found better ways to nail into the second layer of systems, especially schemes such as Lightning Network and Ark, which allow end users to unilaterally return Mainchain without the permission or approval of some operators.

Scaling Bitcoin in a way that promotes higher transaction volumes without reducing Bitcoin’s security, so indistinguishable from custodians operating by third-party is one of the most critical issues to be addressed to enable Bitcoin to truly succeed in the long term.

This series will explore the architecture of Bitcoin’s different layer 2 systems, both of which are now deployed on-site on the network, and at this point they are just designed and suggested architectures.

Listed below are the systems I’m going to cover. The design space for Level 2 is much more inflated than many are familiar with, so the list should not be considered comprehensive and complete and will be updated over time to reflect other Level 2 covered.