I spotted this video today -> http://youtu.be/uXVRsqsvPXQ
It’s claiming Bitcoin can’t process more than 500 transactions a minute, therefore it will have to die due to ever increasing transaction fees. It also says Peercoin is the answer.
I’d like to know:
[ol][li]Does Bitcoin suffer from this limitation[/li]
[li]Can Peercoin mitigate against it?[/li]
[li]If so how[/li][/ol]
To answer my own question. It seems the limit is only artificial and will be addressed easily should it become an issue.https://en.bitcoin.it/wiki/Scalability
Bitcoin’s security relies on miners. As time goes on, Bitcoin will be forced to move transactions “off block-chain”. Going off blockchain isn’t bad, but if Bitcoin moves off block-chain, miners cannot be compensated for these transactions. If miners cannot be compensated, they won’t mine. If miners don’t mine, network security goes down as time goes on. As time goes on, Bitcoin becomes increasingly less secure and more risky to use as a safe-haven to store very large sums of money. Peercoin’s design solves this problem. Peercoin doesn’t need the miners.
Have seen this video yet?
The posted wiki entry tells about the simple verification protocol. Maybe we should try to do something similar with ppc, since this could be more difficult due to the fact that we need information about random transactions from the past to verify a new PoS block.
I am not totally sure about that, but it would be a interesting question to sunny king.
In addition I doubt that PeerCoin would need as much energy as VISA or paypal to maintain the network, since these kind of payment providers run exhaustive fraud checks on every transaction that can easily sum up to 15 minutes until a transaction is ultimately confirmed.
Very interesting read!