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QuantumAGI
Nickel Bitcoiner
Nickel Bitcoiner
Posts: 18
Joined: Wed Sep 23, 2015 1:52 pm

Solution to Block Size Problem

Sun Jul 03, 2016 11:36 am

There are currently 2 camps:
a) Those wanting to see the block size remain unchanged.
b) Those that want to increase the block size to comfortably contain the vast majority of transactions.

The people in camp (a) believe that transaction fees have to rise so offset the decrease in block mining reward over time.
The people in camp (b) want to keep bitcoin transactions costs competitive to ensure future widespread growth and adoption.

However, there is a 3rd option:
c) Cap average transaction fees by increasing the block size when the average transaction fee moving average over the last N days exceeds today's average transaction fees.

Not only does this keep Bitcoin affordable and promote growth but it also gives a mechanism by which to grow the block size in a sustainable way that protects the interests of BOTH miners and Bitcoin users. Transaction fees become a linear function of block size and in so doing data storage and network costs become negligible over the long term.

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