The attractive Bitcoin In 2011, it was my first time to know about Bitcoin. After I understood how it works, I was impressed by the exquisite design. At that time, when a website or merchant transacted by Bitcoin every time, those bitcoin fans including me would all be excited. In the context of globalization. We want more businesses to accept Bitcoin, and more people to use Bitcoin. We feel that we are participating in the world-class changes. As one of the early participants, we have promoted and witnessed bitcoin hitting on globe and many people would crash on it The barrier of Development With more and more users of Bitcoin, a problem that restricts the development of Bitcoin is highlighted: the bottleneck of capacity. The first problem brought by the lack of capacity is that the confirmation time becomes longer. The time between the initiation of a transfer and the time it was written into the blockchain becomes longer. The long wait has made bitcoin harder to use. If you do not want to go through long waits, you can only expedite the confirmation by paying higher transfer fees. The high transfer fees make Bitcoin lose its advantage on small transfers. The micropayment application scenarios that were once very suitable for Bitcoin, such as buying games and buying VPNs, are no longer applicable to Bitcoin. The network began to appear that "Bitcoin should be used like gold for stored value, it should not be used for payment, especially for small payments." People who have this idea completely deceive themselves. If a new currency that meets both the stored value requirements and the various payment requirements is present, Bitcoin will completely lose its competitive advantage due to the functional impairment and be replaced by the new currency. Expansion plan There are three major expansion plans: 1.Segregated Witness 2. Lightning Network 3. Block expansion Bitcoin Cash (BCH, also known as BCC) and Bitcoin SW2X (SW2X for short)
Segregated witness is proposed to solve Bitcoin's "Transaction Malleability" problem. It is to put the signature part of each transfer into the back of transfer data. Since this part of data does not count towards 1M block size, it can achieve the effect of expansion. . In other words, the main role of segregated witness technology is not expansion, expansion is only a side effect. Ideally, it will achieve a capacity expansion of about 2M. However, in practical applications, the proportion of SW transfers only accounts for about 10% of the entire network, and the effect is greatly reduced.
Lightning Network will stimulate large settlement agencies to provide customers with Bitcoin management accounts that are very cheap and easier to use. This will give rise to financial intermediaries, but Bitcoin is to oppose such financial nodes to be created.
SW2X solutions also have the problem of "separation witness" programs.
Compared with the above solutions, the BCH solution is very simple: directly expand the block capacity to 8M, and remove the security threats such as SW and RBF. In fact, this is exactly the original plan of Satoshi Nakamoto. The 1M block size was originally protected in order to prevent a lot of low-cost, low-cost spam transactions. After the development of the network, this restriction needs to be lifted.
– BTC fee: 0.003 BTC/KB – BCH handling fee: 0.0002 BCH/KB
In fact, now the BCH network has a large enough capacity, and as long as it gives a little fee, it can be quickly confirmed. The effect of reducing handling fees through expansion is obvious. The above advantages are also my reason for supporting BCH.
To put it another way, compromise will not help Bitcoin's development. Just like the evolution of biology, the diversity of genes will allow the species to continue and will not be eliminated in a larger competitive environment.