To become a world currency, cryptocurrencies like Bitcoin—Bitcoin Cash (BCH) specifically—need to scale to the level of transactions that traditional payment networks can provide. To put it simply, the Bitcoin Cash network needs to be able to onboard millions, even billions, of people around the world.
On-chain scaling is the only option that can make Bitcoin accessible to billions of people worldwide, making it one of the most important challenges for the cryptocurrency and its network. Joannes Vermorel, founder of quantitative supply chain Lokad, believes that the Bitcoin Cash chain is capable of handling up to 1TB blocks, which, in turn, could onboard all of mankind.
“1TB is 50 transactions a day per human for 10 billion humans. There is not even 10 billion humans on earth right now… and then most people don’t do 50 transactions a day either,” Vermorel told CoinGeek.com.
The key, he said, lies in planning ahead. Vermorel likened the Bitcoin Cash chain to an aircraft, which needs to be not just sufficiently secure—but “over-engineered” so that potential difficulties will be considered “statistically complete anomaly.”
“I think sound engineering is to plan ahead, so that you know, even Black Friday, where there is a purchasing frenzy, it works out very, very smoothly because we want to keep the Bitcoin Cash network super reliable, super low cost, so that transactions get to be confirmed for less than a tenth of a cent within seconds,” Vermorel said. “That’s why we need to engineer for a scale that is at least one order of magnitude of what we think we will need so that even if not everything goes according to plan and we have some engineering difficulties, we have something that is sufficiently over-engineered so that it’s super, super reliable.”
Sound engineering for reliable, fast transactions
Vermorel and his Lokad team have embarked on what he described as an “ambitious project” that targets to address the most difficult scaling problem of Bitcoin: managing unspent transaction outputs (UTXO) dataset.
The Terab project is an open source initiative with a goal of delivering, among other things, a standardized microservice API and high performance single node, multi-node and distributed software implementations that are progressively capable of supporting the throughput required for 1GB and then 10GB blocks, laying the groundwork for similar implementations that can support TB size blocks.
“I’m more in favor of a relatively rapid increase because we don’t know when people will start to onboard en masse, and we don’t want to end up in a situation where if like 50 million people want to join the next day, it will go smoothly,” Vermorel said. “It will not go smoothly if there is like 10 billion people who want to jump in tomorrow but if we’re at least a couple of million, it should work fine. And there is zero technical reason why it couldn’t work fine right now.”
Vermorel will join the who’s who of the Bitcoin Cash community at the inaugural CoinGeek Conference, happening at the Four Seasons Hotel in Hong Kong on May 18. The Lokad founder will talk about overcoming eCommerce hurdles with Bitcoin Cash at the upcoming conference, which will be focusing specifically on merchant adoption of Bitcoin Cash.
The one-day event, which is also hosting an after-party courtesy of CoinGeek.com owner Calvin Ayre, is shaping up to be a landmark in merchant adoption and education in the benefits of the best micropayment solution with the lowest fees for both vendor and buyer.
Register now for the CoinGeek.com Conference, and get 50% discount if you’re paying in Bitcoin Cash. Credit card payments are also welcome.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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