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You don't need to settle every transaction on the blockchain itself. See https://lightning.network/ https://lightning.network/

• bduerst 10y ago
  Sidechains are not a workaround, even ignoring that they're centralized and marketed as such. Sidechains only solve the problem of user scalability, not volume scalability, because they still require the Bitcoin network to verify. For example, on a side chain it would take seconds to make 10,000,000 transactions between 2 people, but making 2 transactions between 10,000,000 people would take over a month.
  • tlrobinson 10y ago
    Sidechains and Lightning Network are not the same thing. https://en.bitcoin.it/wiki/Lightning_Network https://en.bitcoin.it/wiki/Lightning_Network https://lightning.network/ https://lightning.network/ https://bitcoinmagazine.com/articles/greg-maxwell-lightning-network-better-than-sidechains-for-scaling-bitcoin-1461077424 https://bitcoinmagazine.com/articles/greg-maxwell-lightning-... It's basically a network of "payment channels" you can route instantaneous off-chain payments over, which occasionally settle on the blockchain. And you don't need to trust anyone in the network with your funds.
    • bduerst 10y ago
      So it's an alt-coin that still requires bitcoin?
      • tlrobinson 10y ago
        No, you're still transacting in Bitcoin, it's just using fancy smart contracts to allow you to do it (mostly) off the blockchain in a secure way.
• stale2002 10y ago
  Exactly, that is one of the "clever solutions" that I was referencing.