Zhuoer Jiang talks about BCH scalability on Bitcoin Cash 3rd Anniversary Conference
👉YouTube link:Keynote: Zhuoer Jiang, BCH scalability upto to 57 millions users in the upcoming bull market
Why do I have to buy BCH instead of other coins, such as EOS, BSV, ETH, LTC or XRP, if the BTC is congested?
1.When the bull market is coming, it is expected that a large number of users will flow in the crypto world, but the two most important public chain, BTC and ETH have reached their performance limits and they are highly congested.
2.The reason for BTC congestion is that it is unwilling to scale up, and its scalability problem hardly to be solved in the future.
BTC block size increasing requires a hard fork, given that the BTC community has a strong consensus on not to increase block size, if the hard fork occurs, another coin will be generated, the history repeats itself (scenario 2017) and the supporters of the split will realize that BCH is a better alternative.
3.BTC’s Lightning Network (LN) , SegWit (SW) and other scalability means have proven to be ineffective, almost nobody uses LN and SW has only a 20% scalability effect.
Bitcoin is now experiencing severe congestion. Over the past days, there are 50–100 MB unconfirmed transactions and the transaction fees per KB reach 0.001 BTC (calculated at 0.5 KB per transaction with a transaction fee of $6), reaching 30% of the level in 2017, the bull market summit period.
4.Unlike BTC, the ETH reaches its upper limit not because of its unwillingness to scale up, but because it cannot. Currently, there are 15–20 transactions per second on ETH, which has reached its upper limit of network hardware performance.
This is because the underlying architecture of ETH and BTC is different. The UTXO model designed by Satoshi Nakamoto saves more computing resources than the ETH model. The smart contract code on ETH also consumes a lot of resources. Therefore, ETH can only reach 15–20 transactions per second, and its performance upper bound is less than 5% of the Bitcoin.
For ETH, shading its best hope, that refers to splitting the entire Ethereum network into multiple portions called ‘shard’. Each shard (each node) would run 1/n of all data, in this way shading can increase significantly the performance by n times.
Indeed, according to the scalability trilemma (no blockchain can exhibit all three traits without having to sacrifice one of them: Decentralized, Scalable and Secure), this will lead to a substantial decrease in the security of the Ethereum, as long as single-shard has a problem, Ethereum main chain will have a problem. The data exchange between shades will also become very difficult.
5. When BTC and ETH are congested, users will flow to other chains and benefit other uncongested chains. But BCH is the only decentralized public chain that can carry tens of millions of users, and it will receive most of the users.
The current network can support blocks of 100–200MB, assuming an average transaction size of 0.5 KB, the TPS (transaction per second) is 333 to 666. Based on 1 transaction per active user per day, BCH will be able to support 28.8–57.6 million users, which means BCH is sufficient for a long period of time.
While for other chains, either they have insufficient performance or they are not decentralized enough. Various chains, such as BSV, TRON, and XRP, they are completely controlled by individuals or institutions and they are not sufficiently decentralized.
Blockchain = database + decentralization,
a blockchain without decentralization will become the most common, least valuable database, and can be destroyed at any time.
Most of these public chains are similar to Ethereum, having written the smart contract code into the public chain, their TPS is similar to Ethereum. In contrast, BCH has created a data layer, the main chain only stores data and does not parse smart contract code, whereas the smart contract is only parsed on the second layer (such as the SLP protocol), BCH is better in terms of architecture.
6. Obviously, BCH still has many areas to be improved. For example, I think even that we have 0 confirmation and avalanche protocol, the block time should be reduced to allow users to have a better experience. The source of funds for BCH development and the community decision-making mechanism are still unclear. These are the directions we must work harder.
Here is our vision: making the BCH the world currency, making the BCH to serve 7 billion people around the world.
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