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Here is a good analysis of the flash crash from that day: https://twitter.com/austerity_sucks/status/1452332472725819401 https://twitter.com/austerity_sucks/sta

by josu 3y ago

Here is a good analysis of the flash crash from that day: https://twitter.com/austerity_sucks/status/1452332472725819401 https://twitter.com/austerity_sucks/status/14523324727258194... - It lasted 12 seconds. - Total BTC traded was 290.54 - Only 2% of that was at price of 10K or below. - Most volume happened in $20-30K range, over 50% discount to mkt. Here is a tweet from someone (rightly) speculating that it had been Alameda: https://twitter.com/TheoryBitcoin/status/1452345411759398923 https://twitter.com/TheoryBitcoin/status/1452345411759398923

NelsonMinar 3y ago
The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.
- Vecr 3y ago
  (Most) trading's not done on chain, it's settled later. Alameda could absolutely trade faster than that.
  - 0cf8612b2e1e 3y ago
    Doesn’t that just mean the trading is done by a trusted third party? Fine until the third party goes belly up.
    - vgatherps 3y ago
      This is how most asset trading works, but outside of crypto these third parties are actually trustworthy
      - JumpCrisscross 3y ago
        > outside of crypto these third parties are actually trustworthy With multiple layers of mutualised failsafes.
        vgatherps 3y ago
        Don't forget meaningful regulations and legal requirements placed upon these parties
      - junofan 3y ago
        Well, one might argue they’re trusted to grift retail. The money firms make doesn’t come out of thin air. SEC is fairly toothless in this area.
    - Scott_Sanderson 3y ago
      Yes, the exchanges are 3rd parties that could lose, and often do lose, the money
      - HWR_14 3y ago
        I thought the (noncrypto) financial exchanges made a very small amount of money on every trade.
- zdw 3y ago
  Has this improved as of late? Maybe with other blockchain systems?
  - josu 3y ago
    Yes, it improved in 2018, but people are still stuck on the 12 tx/s. The Lightning network allows thousands of tx per second [1]. [1] https://en.wikipedia.org/wiki/Lightning_Network https://en.wikipedia.org/wiki/Lightning_Network
  - quickthrower2 3y ago
    Snarky (flamewar starting) answer is it improved massively since they made the blocks bigger in 2017.
- josu 3y ago
  The Bitcoin blockchain processes a block of transactions every 10 minutes on average. Each block usually contains 2k-4k transactions. The maximum capacity is around 4k, equating to 7 transactions per second or 84 transactions per 12 seconds. (Note that 12 seconds is the confirmation time of the Ethereum blockchain). That being said, the Lightning Network was deployed on the Bitcoin blockchain in 2018. It allows for thousands of transactions per second, thanks to a very elegant solution[1]. Unlike traditional blockchains, the Lightning Network is not blockchain-based, freeing it from the limitations we are all familiar with. However, it inherits all the security properties of its underlying blockchain. While the Lightning Network has its fair share of shortcomings, its scalability remains an open question. Nonetheless, it has been working great for over 5 years. [1] https://lightning.network/lightning-network-paper.pdf https://lightning.network/lightning-network-paper.pdf

by josu 3y ago

NelsonMinar 3y ago

The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.

Vecr 3y ago
(Most) trading's not done on chain, it's settled later. Alameda could absolutely trade faster than that.
- 0cf8612b2e1e 3y ago
  Doesn’t that just mean the trading is done by a trusted third party? Fine until the third party goes belly up.
  - vgatherps 3y ago
    This is how most asset trading works, but outside of crypto these third parties are actually trustworthy
    - JumpCrisscross 3y ago
      > outside of crypto these third parties are actually trustworthy With multiple layers of mutualised failsafes.
      - vgatherps 3y ago
        Don't forget meaningful regulations and legal requirements placed upon these parties
    - junofan 3y ago
      Well, one might argue they’re trusted to grift retail. The money firms make doesn’t come out of thin air. SEC is fairly toothless in this area.
  - Scott_Sanderson 3y ago
    Yes, the exchanges are 3rd parties that could lose, and often do lose, the money
    - HWR_14 3y ago
      I thought the (noncrypto) financial exchanges made a very small amount of money on every trade.
zdw 3y ago
Has this improved as of late? Maybe with other blockchain systems?
- josu 3y ago
  Yes, it improved in 2018, but people are still stuck on the 12 tx/s. The Lightning network allows thousands of tx per second [1]. [1] https://en.wikipedia.org/wiki/Lightning_Network https://en.wikipedia.org/wiki/Lightning_Network
- quickthrower2 3y ago
  Snarky (flamewar starting) answer is it improved massively since they made the blocks bigger in 2017.
josu 3y ago
The Bitcoin blockchain processes a block of transactions every 10 minutes on average. Each block usually contains 2k-4k transactions. The maximum capacity is around 4k, equating to 7 transactions per second or 84 transactions per 12 seconds. (Note that 12 seconds is the confirmation time of the Ethereum blockchain). That being said, the Lightning Network was deployed on the Bitcoin blockchain in 2018. It allows for thousands of transactions per second, thanks to a very elegant solution[1]. Unlike traditional blockchains, the Lightning Network is not blockchain-based, freeing it from the limitations we are all familiar with. However, it inherits all the security properties of its underlying blockchain. While the Lightning Network has its fair share of shortcomings, its scalability remains an open question. Nonetheless, it has been working great for over 5 years. [1] https://lightning.network/lightning-network-paper.pdf https://lightning.network/lightning-network-paper.pdf