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There was never any need to scale it at the protocol level. The overwhelming majority of Bitcoin transfers presently happen off-chain, within exchanges. Very fe
by rebelos 5y ago
There was never any need to scale it at the protocol level. The overwhelming majority of Bitcoin transfers presently happen off-chain, within exchanges. Very few people seem to understand this.
- oblio 5y agoI don't understand. How do Bitcoin transfers happen off-chain? Are those Bitcoin transactions that don't actually use the blockchain?
- rebelos 5y agoThe exchange itself holds a fluctuating amount of Bitcoin and then updates entries in its own database when transfers occur between exchange participants to reflect a change in ownership. These constitute the vast majority of transactions that occur and none of them are recorded to the blockchain.
- oblio 5y agoAnd the exchange is centralized?