“High” transaction fees and the future feasibility of micro-transactions. Transaction costs represent inherent real-life constraints on scalability and resource availability in the network. It costs money to host fully validating nodes. There is no such thing as a free lunch. Bitcoin was able to achieve zero-fee transactions because the cost was subsidised by the mining reward and bitcoin’s value increasing at a faster rate than resources were being consumed. It is not because of the block size limit; as you scale up, the amount of competition for space will also grow. We will see increases in the block size eventually, and add second-layer systems like Lightning Network.
Bitcoin is a dynamic and evolving system and the rate of innovation has exploded over the last few years. Appointing third parties to determine which transactions are “spam” opens up opportunities for censorship. Sufficient fee is a market-based mechanism. Even if your transaction doesn’t have sufficient fee at the time, it could still be confirmed later when there is less demand for the network. Transaction malleability. Segregated Witness is the best scaling that exists right now. For many miners, it represents a potential loss of profit but only if they’re not willing to evolve their software and participate in payment channels. If we choose not to expand the scale of the network, that doesn’t mean Bitcoin stops working; it means that Bitcoin will specialise in high-value, global, secure transactions. Nobody gets to decide what Bitcoin and we don’t know what it will become. The recipe has been replicated in other cryptocurrencies, and that’s how a market should work — allowing the full forces of evolution and specialisation to operate.
This is part of a talk which took place at the JW Marriott Sahar (International Airport) on March 26th 2017 in Mumbai, India: https://www.townscript.com/e/bitcoin-talk-by-the-world-famous-andreas-antonopoulos-203132
Watch the full talk here: https://youtu.be/ONvg9SbauMg
RELATED:
The Lightning Network – https://youtu.be/vPnO9ExJ50A
Lightning, full nodes, and miners – https://youtu.be/dlJG4OHdJzs
Bitcoin & Blockchain in Norway – https://youtu.be/5ODDCx6VL2Y
What happens to transaction fees when the block reward is zero? – https://youtu.be/FffX32ENGKc
Rules vs. Rulers – https://youtu.be/9EEluhC9SxE
Governance and the transaction fee market – https://youtu.be/gdknUUVOdHU
Scaling is a moving target – https://youtu.be/pT9kJq_Ogrk
Why we should worry about optimization, not scaling – https://youtu.be/J3sEcuCc9fg
Altcoins and the scaling debate – https://youtu.be/slbpdW-H3yk
The Scaling Rites of Passage – https://youtu.be/rZi86_ovB3Y
Is Bitcoin development centralised? – https://youtu.be/7hm4Ro4wdTk
Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin.
Follow on Twitter: @aantonop https://twitter.com/aantonop
Website: https://antonopoulos.com/
He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.
THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8
MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042
[NEW] MASTERING BITCOIN, 2nd Edition: https://www.amazon.com/Mastering-Bitcoin-Programming-Open-Blockchain/dp/1491954388
Subscribe to the channel to learn more about Bitcoin & open blockchains!
If you want early-access to talks and a chance to participate in a monthly LIVE Q&A with Andreas, become a patron: https://www.patreon.com/aantonop
Videography: Zebpay Bitcoin India
Music: “Unbounded” by Orfan (https://www.facebook.com/Orfan/)
Outro Graphics: Phneep (http://www.phneep.com/)
Outro Art: Rock Barcellos (http://www.rockincomics.com.br/)
source
SCALE this CRYPTO HERO :>) A true (un)polished multifaceted passionate Crypto diamond!
Modern Robin Hood of Economy. Well educated, interested, experienced Metaphorical connecting our financial past and future from with passion!
From Technical, Biological, Medical, Economical, Anthropological and IT perspective. Very enriching for navigating (financial) life! Greeting from Amsterdam
If your transaction costs are so high that there is an incentive for other blockchains/DAGs (Google for DAG!) to pick up that traffic, your blockchain will stop growing and other systems will take over.
I love the discussion around specialization. From what I have experienced, most people believe that Bitcoin will fail if the network does not adopt SegWit, etc. which is simply not true.
When Bitcoin is finally mined out who will control the code.
ga suka denger orang india ngomong bahasa inggris, gatau kenapa, maaf yg orang india, cuma perasaan pribadi aja. peace
Andreas will be the first Trillionaire…
I don't get anything for running the node j run, so no, the fee does not go to the people running nodes, but to the miners, yes.
Genio!
will have nightmares of being scammes from this
Andreas is talking nonsense…
He starts out answering the question about 1,000% increase in Bitcoin transaction fees – with a statement about run full nodes and the inherent cost of that full node.
What rubbish !!
Andreas and everyone else knows that full nodes do not get paid for their services.
The issue is the Chinese miners who may or may not be processing empty blocks.
Andreas should be focusing on the facts.
I'd like to hear Andreas talk about the long-term outcomes/effects of a deflationary currency like Bitcoin. Is deflation necessarily a positive attribute of money?
If fees don't come down Bitcoin will not be adopted. Simple as that.
Anyone heard of ONG Social ICO?
can effect GST In bitcoin price ??????
Worst audio ever!!!!
Andreas is great, and Bitcoin may end up being one of the greatest inventions in history.
IOTA have free lunch,
No fees, instant transaction
I'm surprised Litecoin is not yet hundreds
I've found that indians are very confused by bitcoin but at the same time they love it. I want to shake them and say "No One Is In Charge Of Bitcoin!!!"
Zero ?