3 ms·

Aren't the vast majority of market participants already operating outside the blockchain, relying on exchanges and sometimes on so-called "L2" networks like Lig

Aren't the vast majority of market participants already operating outside the blockchain, relying on exchanges and sometimes on so-called "L2" networks like Lightning? I think the majority of Bitcoin and Ethereum proponents are already talking about them as "digital gold" instead of digital currency. The mining pools have also blocked any attempt to make the Bitcoin blockchain more efficient at transactions (by keeping the block size small), so on-chain trading is doomed to remain an extremely low-rate event for the foreseeable future. Is it still at 7-10 transactions/second globally? So overall it seems quite easy to force the matter and implement KYC and AML for msot legal Bitcoin transactions.

rfoo 3y ago
> So overall it seems quite easy to force the matter and implement KYC and AML for msot legal Bitcoin transactions. At that point people would seriously have more interest in the so-called "L1 scaling solutions" which mining pools blocked. And mining blocks can't block such things anymore given that there is enough interest.
xiphias2 3y ago
While you're right that Lightning L2 transactions generally aren't published on the blockchain, while following the lightning protocol, real Bitcoin transactions are passed between network participants that can be published by any of the participants if another other party doesn't follow the lightning channel rules.
- yuvadam 3y ago
  Force closed channels are an edge case that usually occurs due to unresolved HTLCs during network disconnects, and hardly ever due to malice. Channels can also be closed cooperatively between nodes at any time. Lightning transactions themselves never hit the blockchain - channel opens and closes do.
LikesPwsh 3y ago
Seven TPS was a theoretical maximum, it normally ranges from three to six.
FabHK 3y ago
If everyone used Bitcoin, everyone could do about one or two transactions in their lifetime. The network cannot handle more than that.

rfoo 3y ago

> So overall it seems quite easy to force the matter and implement KYC and AML for msot legal Bitcoin transactions. At that point people would seriously have more interest in the so-called "L1 scaling solutions" which mining pools blocked. And mining blocks can't block such things anymore given that there is enough interest.

xiphias2 3y ago

While you're right that Lightning L2 transactions generally aren't published on the blockchain, while following the lightning protocol, real Bitcoin transactions are passed between network participants that can be published by any of the participants if another other party doesn't follow the lightning channel rules.

yuvadam 3y ago
Force closed channels are an edge case that usually occurs due to unresolved HTLCs during network disconnects, and hardly ever due to malice. Channels can also be closed cooperatively between nodes at any time. Lightning transactions themselves never hit the blockchain - channel opens and closes do.

LikesPwsh 3y ago

Seven TPS was a theoretical maximum, it normally ranges from three to six.

FabHK 3y ago

If everyone used Bitcoin, everyone could do about one or two transactions in their lifetime. The network cannot handle more than that.