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Centralization of BTC in progress? Could anyone knowledgeable chime in?
by bitL 9y ago
Centralization of BTC in progress? Could anyone knowledgeable chime in?
- VMG 9y agoI'm trying but I don't understand your question
- bitL 9y agoMy limited knowledge tells me that BTC will lose its main reason for existence - solution of Byzantine generals problem, allowing trustless store of value. With what I've read about SegWit, it's a practical solution to improve transaction throughput by moving transactions off blockchain, which in turn removes trustlessness from the equation. I'd like to know if my conclusion is correct.
- Empact 9y ago1) Segwit does improve transaction throughput, but it does so by improving the efficiency of transaction storage on the blockchain. 2) The Lightning Network improves transaction throughput by moving transactions off the blockchain, and requires segwit to be active for reasons apart from its transaction efficiency, specifically that it fixes the transaction malleability problem.
- nicky0 9y ago1. Actually that is incorrect. SegWit transactions are several bytes larger than old style transactions.
- nicky0 9y agoYou have been misinformed. SegWit does not move anything off the blockchain. It just rearranges things within the blocks.
- umanwizard 9y ago> With what I've read about SegWit, it's a practical solution to improve transaction throughput by moving transactions off blockchain SegWit has nothing to do with this — maybe you are thinking of Lightning Network?
- bitL 9y agoPossibly. I guess I need to study it a bit more in depth, usual grad-level crypto & distributed algorithms aren't sufficient.
- always_good 9y agoWhy would they be? SegWit is a specific application you of course would have to read about to understand.
- deleted 9y ago[deleted]
- joshschreuder 9y agoI think that's off-chain networks like Lightning, not segwit
- VMG 9y agoLightning is trustless and decentralized
- VMG 9y agoSegwit enables many things, one of them is Lightning Network. While that is an off-chain transaction system, it still is trustless and decentralized. In fact the transaction cost reduction could make custodial services like exchanges less attractive and improve decentralization.
- curuinor 9y agoCentralization was finished a half-decade ago.
- wyager 9y agoSegwit is simply a new transaction format where the txid can be calculated before signing. It has nothing to do with centralization.
- yorby 9y agosegwit will indirectly lead to centralization... when lightning network gets fully implemented
- shard972 9y agoCare to explain that? I don't see how segwit makes it any easier for lightning to be brought into the fold.
- nodja 9y agoNot parent but AFAIK Lightning Network requires transactions to be non malleable, i.e. the txid needs be signed together with the rest of the transaction. Without a solution like segwit, miners can change the transaction ID and undermine layer 2 like the Lightning Network.
- pkulak 9y agoWell, I guess. Same as happened in email decades ago. I don't really see the issue.