free web page hit counter
Satoshi's greatest mistake and how smartBCH can potentially change that.

Satoshi's greatest mistake and how smartBCH can potentially change that.

Bitcoin Reddit

More / Bitcoin Reddit 45 Views

First off, this is a post about lightning network which can be a touchy subject in the BTC/BCH community.

In it's current iteration, I do think that the lightning network works "decently", there can definitely be improvements, and I personally do believe that the lightning network can only really scale with an eventual increase in the block size. However there are problems with lightning network outside of the actual implementation.

One thing I want to clear up is that Satoshi himself did talk about a payment channel concept. So the idea that lightning network doesn't align with Satoshi's vision is borderline nonsense. He was one of the first ones to suggest the idea. However this mere discussion about this payment channel concept and not an actual implementation is one of Satoshi's greatest mistakes.

One of the greatest ideas about Bitcoin was an ability to have distributed consensus, a way for many computers to agree on the "truth" of a global ledger, using Proof of Work, without any trusted third parties. However Satoshi's suggestion about using payment channels but not an actual implementation of how these payment channels would work goes against this great idea of distributed consensus.

Without an official implementation from Satoshi, it lead to many different companies creating their own white papers, algorithms, and implementations for a theoretical payment channel system. If the nodes and users can't decide which payment channel implementation they want to use, it shits on the distributed consensus that bitcoin has built in the first place. Some of these implementations also required trusted third parties! Not only that, many proposals of payment channels required a change to the main chain for the payment channel to be feasible. A change to the underlying distributed consensus!

However with the advent of smartBCH, I do think we have an even better alternative to a payment channel system. A side chain that inherits the security of the main chain, while adding more transaction throughput, without any trusted parties. Not only that, this sidechain can add more functionality to the token, without disrupting the underlying distributed consensus.

Sidechains have been present in Ethereum for a while, but smartBCH is different because it uses a token(sBCH) pegged 1 to 1 with BCH. A really great way to create a network that behaves more as an extension to BCH and not a separate competing network. When sidechains use a different token than the main chain, it creates a competitive environment, that fractures the parent network.

If this smartBCH experiment goes well, I feel like the BCH community can official;y declare that they solved the off chain scalability problem better than BTC. Not only that, we can even declare that we even beat Cardano to the punch, (they have similar ideas about a main UTXO chain that acts a stateless financial settlement layer, with layers 2 with more functionality, different account models, and different functionality.)

Also this lays down a groundwork for new ways to extend the functionality of the BCH network without causing too much disruption to the distributed consensus of the main chain.

However I do think that smartBCH still needs some improvements:

  1. Setting up metamask for BCH isn't the most user friendly thing. We need a wallet that connects to smartBCH by default. I know that the Dapp developer ecosystem makes it very easy to develop apps that connect to Metamask, but Metamask is not forkable. Which means the BCH community can not make it's own Metamask wallet that works by default with smartBCH without building it from scratch.
  2. BCH wallets need bridges built into wallet clients that allows you to send normal BCH to smartBCH wallets while using a bridge under the hood, abstracted away from the user.
  3. Even though that smartBCH made improvements to the EVM, the EVM still has transaction throughput issues. Eventually smartBCH will become congested. Solana creators claim "In practice we see that the most aggressively optimized EVM-based blockchains all seem to peak out around 1,200 TPS"

Note on problem 3:

I think that the overall consensus now is that to scale EVM blockchains, we have to implement sharding. However I believe that once smartBCH becomes congested, we can run up new smartBCH networks that run in parallel. Very similar to the idea of parachains that Polkdadot (DOT) has, we can use the main UTXO chain as a beacon chain that can communicate between multiple running smartBCH networks. A lot of work has to be done before we can get to this point though.

TLDR: Pretty bullish about BCH if smartBCH gains more adoption and traction.

submitted by /u/CoderDanLee
[link] [comments]