Bitcoin transaction processing rate after hyperbitcoinization
685 sats \ 12 comments \ @tulun 4 Jul 2023 bitcoin
Bitcoin onchain transaction processing rate is ~5 tx/second. Lightning comes to help for majority of transactions like daily purchases, but one still has to go onchain to open at least one channel to ensure their sovereignty. And this ends up with a limit of ~150M tx per year for 8G world population... that meas an average person would barely afford opening a single channel during the entire lifespan, leaving aside possible problems channel issues. That obviously does not appear sustainable.
What do I miss? Do we anticipate some kind of 2nd level solutions to circumvent that? Of course we're talking about rather far future, but is there a rough understanding of how it is going to work on such a timescale?
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85 sats \ 4 replies \ @jk_14 4 Jul 2023
Average Joe is lazy AF, regardless of neverending reminders, that "not your keys, not your Bitcoin":
"Brian Armstrong, CEO of cryptocurrency exchange Coinbase, said that his company holds around 2 million bitcoin worth $39.9 billion as of September 30, 2022." q.e.d.
so Average Joe will obviously choose an easy peasy custodial wallet like Wallet_of_Satoshi and suddenly there is no problem described above... (like it or not)
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0 sats \ 3 replies \ @tulun OP 4 Jul 2023
OK, probably true for an average user. Still it seems reasonable (just to me?) to assume that, say, 1% of people would want to maintain this self-sovereignity. And even those people - 80M (taking a likely wrong assumption that the world population saturates today) - will hardly afford a TX per year... I'm still not convinced it's the way to go.
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0 sats \ 2 replies \ @jk_14 4 Jul 2023
I have working channel in my Phoenix wallet with funding transaction 800k sat in 2020-02-22 so, 3.5 years so far, and I see no single reason to close it especially that's $250 right now, and probably $2500 in coming years precious asset in fact - so how could I close it, and not: keep it "forever" ? :)
one TX per decade - is very probable in my case of non-custodial wallet user
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0 sats \ 1 reply \ @tulun OP 4 Jul 2023
But it is not either guaranteed to be kept open forever by ACINQ, especially if all the inbound liquidity is on your side, if I understand correctly?
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0 sats \ 0 replies \ @jk_14 5 Jul 2023
no, I rather try to keep it "balanced": Spend & Replace :)
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42 sats \ 4 replies \ @03365d6a53 4 Jul 2023
nobody will be using on chain except big businesses and governments
we'll have to trust fedimints, ASPs, and custodians
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21 sats \ 3 replies \ @tulun OP 4 Jul 2023
Does it not eliminate a major part of what we want to use Bitcoin for?
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42 sats \ 2 replies \ @03365d6a53 4 Jul 2023
depends what you mean by, "what we want to use bitcoin for"?
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0 sats \ 1 reply \ @tulun OP 4 Jul 2023
well, here - primarily the personal control of one's own funds and not relying on any structures like those currently named banks. Of course we still keep some of the Bitcoin virtues even though (no inflation), but still
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10 sats \ 0 replies \ @03365d6a53 4 Jul 2023
layer 1 doesn't scale for personal use (unless you are rich / an early adopter)
I'm also keen to know more about technologies / solutions for securing sats on L2
Liquid is one option. community fedi is another.
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10 sats \ 0 replies \ @032f088d51 4 Jul 2023
more like 10 tx/second now
there was a new ATH for transactions per day last month (695k)
some transactions have hundreds of outputs so they're not one transaction despite being counted as such
channel factories can make onboarding to lightning 10x cheaper in block space cost. I'm also interested in UTXO sharing research
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0 sats \ 0 replies \ @sudonaka 4 Jul 2023
How many international transactions with final settlement in 60 minutes are possible with gold?
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