“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
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
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
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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/)