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Cryptocurrency can do this, but Bitcoin artificially keeps the blocksize to 1.6KB/s so people think that small transactions are not practical in a general sense

Cryptocurrency can do this, but Bitcoin artificially keeps the blocksize to 1.6KB/s so people think that small transactions are not practical in a general sense, since they aren't practical there.

FreeHugs 7y ago
The throughoutput is only one of the problems. There are more: 1: You need to download and install software to use current cryptocurrencies. And users hate that. 2: Turning Fiat into Bitcoin and vica versa is not easy. 3: It is less private then cash. 4: Volatility of the value. Users would want something pegged to their currency of choice.
- BubRoss 7y ago
  These aren't show stopping problems. Web pages and browser extensions are pretty low barrier to entry. Exchanging cost is not too bad, but probably the biggest hurdle still. Privacy I don't think is a problem here. One random address to another is good enough for these type of transactions. Pegging to another currency means centralization, though that is acceptable to plenty of people. You said you wished there was a solution, all I'm saying is there is a clear path to how it could be done.
- cameronbrown 7y ago
  > You need to download and install software to use current cryptocurrencies. And users hate that. People already trust companies with their money. If banks supported crypto natively the no-install/web app model works great. The last three points are rendered irrelevant here if banks are able to make the experience easy and guarantee some value. Those who don't want the protection of a bank are trading off points 1/2/4 for point 3.
- lawn 7y ago
  > You need to download and install software to use current cryptocurrencies. And users hate that. Users don't have a problem installing apps on their phone. The rest are valid problems, with #2 and #4 being directly linked to low adoption.
pelasgian 7y ago
I've never had an issue sending small amounts using Bitcoin Cash which has increased the blocksize limit. The guy who took over after Satoshi left also says that Bitcoin Cash is what he was working on for what it's worth. https://twitter.com/gavinandresen/status/929377620000681984?lang=en https://twitter.com/gavinandresen/status/929377620000681984?... Cash Shuffle and Cash Fusion will also provide the privacy needed for users to safely enjoy Bitcoin Cash.
stormtv 7y ago
It wouldn't be the best user experience if you had to wait 10 minutes for confirmation. Also by increasing the size of the blocks you increase the orphan rate due to propagation delay which results in needing more confirmations before a transaction is considered truly immutable. Bitcoin has to have a fee market to incentivize miners so that as block rewards decrease the cost of securing the network doesn't shrink as well.
- BubRoss 7y ago
  Bitcoin is never going to solve anyone's problems now. The people who have taken it over have relegated it to a lesson in what not to do. Shorter block times are not a problem and neither are much larger block sizes, both of these things have been proven by other currencies.
- lawn 7y ago
  You don't have to wait 10 minutes for a confirmation, especially not if we're talking about dollar amounts. Credit card transactions work exactly the same as 0-conf, and we seem to accept them just fine. > Also by increasing the size of the blocks you increase the orphan rate due to propagation delay which results in needing more confirmations before a transaction is considered truly immutable. Which happens at around 20 MB. Improvements like Graphene, Xthinner and blocktorrent will drastically reduce the orphan rate allowing for much bigger blocks to be propagated fast enough for the orphan rates to not climb in a relevant fashion. > Bitcoin has to have a fee market to incentivize miners so that as block rewards decrease the cost of securing the network doesn't shrink as well. Or Bitcoin needs many more lower fee transactions to compensate. In a couple of decades.

Cryptocurrency can do this, but Bitcoin artificially keeps the blocksize to 1.6KB/s so people think that small transactions are not practical in a general sense, since they aren't practical there.

FreeHugs 7y ago

The throughoutput is only one of the problems. There are more: 1: You need to download and install software to use current cryptocurrencies. And users hate that. 2: Turning Fiat into Bitcoin and vica versa is not easy. 3: It is less private then cash. 4: Volatility of the value. Users would want something pegged to their currency of choice.

BubRoss 7y ago
These aren't show stopping problems. Web pages and browser extensions are pretty low barrier to entry. Exchanging cost is not too bad, but probably the biggest hurdle still. Privacy I don't think is a problem here. One random address to another is good enough for these type of transactions. Pegging to another currency means centralization, though that is acceptable to plenty of people. You said you wished there was a solution, all I'm saying is there is a clear path to how it could be done.
cameronbrown 7y ago
> You need to download and install software to use current cryptocurrencies. And users hate that. People already trust companies with their money. If banks supported crypto natively the no-install/web app model works great. The last three points are rendered irrelevant here if banks are able to make the experience easy and guarantee some value. Those who don't want the protection of a bank are trading off points 1/2/4 for point 3.
lawn 7y ago
> You need to download and install software to use current cryptocurrencies. And users hate that. Users don't have a problem installing apps on their phone. The rest are valid problems, with #2 and #4 being directly linked to low adoption.

pelasgian 7y ago

I've never had an issue sending small amounts using Bitcoin Cash which has increased the blocksize limit. The guy who took over after Satoshi left also says that Bitcoin Cash is what he was working on for what it's worth. https://twitter.com/gavinandresen/status/929377620000681984?lang=en https://twitter.com/gavinandresen/status/929377620000681984?... Cash Shuffle and Cash Fusion will also provide the privacy needed for users to safely enjoy Bitcoin Cash.

stormtv 7y ago

It wouldn't be the best user experience if you had to wait 10 minutes for confirmation. Also by increasing the size of the blocks you increase the orphan rate due to propagation delay which results in needing more confirmations before a transaction is considered truly immutable. Bitcoin has to have a fee market to incentivize miners so that as block rewards decrease the cost of securing the network doesn't shrink as well.

BubRoss 7y ago
Bitcoin is never going to solve anyone's problems now. The people who have taken it over have relegated it to a lesson in what not to do. Shorter block times are not a problem and neither are much larger block sizes, both of these things have been proven by other currencies.
lawn 7y ago
You don't have to wait 10 minutes for a confirmation, especially not if we're talking about dollar amounts. Credit card transactions work exactly the same as 0-conf, and we seem to accept them just fine. > Also by increasing the size of the blocks you increase the orphan rate due to propagation delay which results in needing more confirmations before a transaction is considered truly immutable. Which happens at around 20 MB. Improvements like Graphene, Xthinner and blocktorrent will drastically reduce the orphan rate allowing for much bigger blocks to be propagated fast enough for the orphan rates to not climb in a relevant fashion. > Bitcoin has to have a fee market to incentivize miners so that as block rewards decrease the cost of securing the network doesn't shrink as well. Or Bitcoin needs many more lower fee transactions to compensate. In a couple of decades.