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Everybody thinks they know bitcoin's fatal flaw when they first learn about bitcoin. It's easy to do that. The hard bit is continuing to learn until you can't

by npoc 2y ago

Everybody thinks they know bitcoin's fatal flaw when they first learn about bitcoin. It's easy to do that. The hard bit is continuing to learn until you can't see any flaws.

hggh 2y ago
I can't see any flaw to the original Bitcoin described in the whitepaper. The flaws started when a temporary anti-DDoS became a permanent "feature".
- npoc 2y ago
  What flaws are those?
  - hggh 2y ago
    1. High transaction fees 2. Reversible transactions (return by fee) 3. Waste of energy due to small blocks (you could put more transactions in a block with the same difficulty so same energy expenditure, with bigger blocks) 4. Returned transactions if tx fee is too low due to points 1 and 2 5. Lack of micro-transactions due to point 4, which were possible with the original Bitcoin
    - npoc 2y ago
      1) Transaction fees are extremely low. I can currently store $1M for 100 years protected from supply inflation and counter party risk for a fee of around 0.0002%. 2) Do you mean "replace-by-fee"? That only affects unconfirmed transactions, in the mempool. 3) There's no waste of energy - smaller blocks provide greater decentralisation (through cheaper HW) and greater robustness (through lower BW). Both are _extremely_ important. 4) Not an issue if you pay around the market rate for your transaction. Even if you bid far too cheaply, you can use RBF mentioned in point 2 to accelerate your transaction. 5) Microtransactions would absolutely destroy the decentralisation and robustness as they would require far, far greater block-sizes. Without a robust base network the value of bitcoin would be at risk. Small transactions are best suited to a layer-2 network such as Lightning, Fedimint, or even centralised payment rails. These will gain more attention as bitcoin proves itself as a store-of-value which is required of any asset before it can be used as money. It sounds like you'd be more interested in forks like "bitcoin cash" or "bitcoin sv" (which are both failing extremely badly relative to bitcoin!).

by npoc 2y ago

Everybody thinks they know bitcoin's fatal flaw when they first learn about bitcoin. It's easy to do that. The hard bit is continuing to learn until you can't see any flaws.

hggh 2y ago

I can't see any flaw to the original Bitcoin described in the whitepaper. The flaws started when a temporary anti-DDoS became a permanent "feature".

npoc 2y ago
What flaws are those?
- hggh 2y ago
  1. High transaction fees 2. Reversible transactions (return by fee) 3. Waste of energy due to small blocks (you could put more transactions in a block with the same difficulty so same energy expenditure, with bigger blocks) 4. Returned transactions if tx fee is too low due to points 1 and 2 5. Lack of micro-transactions due to point 4, which were possible with the original Bitcoin
  - npoc 2y ago
    1) Transaction fees are extremely low. I can currently store $1M for 100 years protected from supply inflation and counter party risk for a fee of around 0.0002%. 2) Do you mean "replace-by-fee"? That only affects unconfirmed transactions, in the mempool. 3) There's no waste of energy - smaller blocks provide greater decentralisation (through cheaper HW) and greater robustness (through lower BW). Both are _extremely_ important. 4) Not an issue if you pay around the market rate for your transaction. Even if you bid far too cheaply, you can use RBF mentioned in point 2 to accelerate your transaction. 5) Microtransactions would absolutely destroy the decentralisation and robustness as they would require far, far greater block-sizes. Without a robust base network the value of bitcoin would be at risk. Small transactions are best suited to a layer-2 network such as Lightning, Fedimint, or even centralised payment rails. These will gain more attention as bitcoin proves itself as a store-of-value which is required of any asset before it can be used as money. It sounds like you'd be more interested in forks like "bitcoin cash" or "bitcoin sv" (which are both failing extremely badly relative to bitcoin!).