never realized it's that bad unless saw the graphs like this one

On that matter I've just found out an etotheipi's (armory core dev) proposal "Ultimate blockchain compression w/ trust-free lite nodes" that he made in June 2012. This is the summary:


More recently TierNolan with his "Locally verifiable unspent transaction output commitments" is "sketching" his idea of a potential implementation. 


it seems that the idea of an "UTXO" light node to add to the the list of the already implemented nodes (full, spv, pruned) is gaining momentum.

Grabbed this off ZH

Australia to Introduce Bank Deposits tax in upcoming budget.

http://www.zerohedge.com/news/2015-05-04/war-cash-australia-leads-new-age-economic-totalitarianism

From a google search

http://www.theaustralian.com.au/business/financial-services/deposit-tax-banks-oppose-budget-tax-plan/story-fn91wd6x-1227284293520

ZH sees it as a trial balloon with US watching the reaction carefully.

Nice graph! Thanks for sharing. So with a 100% filled block you have a 0.1 probability of having your tx confirmed after 1000/sec. This is nasty.

As I already said  multiple times I'm a big supporter of Justus proposal to eliminate false block size scarcity and introducing economic incentive in the p2p nodes network.

Nonetheless I think that a part of txs will occur out of bitcoin main chain, through payment hub, lightning network, you name it. In fact the very solution Justus proposed to implement a price discovery mechanism in Bitcoin p2p network is based on micropayment channels.

Actually Nullc Gmax is positive about an increased blocksize WRT sidechains see here:

Are 20mb blocks good or bad for Sidechains?
https://www.reddit.com/r/Bitcoin/comments/34riua/hard_fork_allow_20mb_blocks_after_1_march_2016/cqxhs1o

Justus laid out a structure.  There are a great number of missing pieces between what exists today in the consensus code and that structure.  There are also undefined and missing elements in the ecosystem.  I like the structure too, but we aren't anywhere close to it yet and it won't be soon.

The current proposal is Gavin's most reasonable one yet.  He dropped the assumptions about the future, took out most of the guesswork, and is implementing the method satoshi offered when the antispam 1mb limit was created in 0.3 or so.

More would be great, and future proof would be even better, no limit best....  but... remember, we are still in beta.  The pieces to do any of that are not written, tested, integrated, accepted and secured.

Bitcoin is still a baby.  So as eager as we all are to get there, we will get there by baby steps or end up not getting at all.  There are a great many looking for us to fail (check the short interest lately?) we help that failure by over-extending what can be done.

20mb gives us some room to build more of the missing pieces.  Its enough for now.

I'll devote more time to explaining how the price discovery mechanism could be rolled out as an incremental upgrade after I finish with this:

https://github.com/justusranvier/wallet-ratings/tree/2015-1/2015-1

I'm for Gavin's 20MB increase.  But if I was doing it, I'd propose actually building a real supply/demand curve so economic analysis actually works.  The reason it doesn't work today is because additional demand (price) cannot ever create new supply (space in the block).

So I'd do it by allowing txn fee paying blocks to be located beyond the limit (its now a "soft" limit).  In other words, if your txn pays 0uBTC fee it can be located in the block at 0-20MB, if 1uBtc located at 0-21MB, if 2uBTC located at 0-22MB, 3uBTC located at 0-23MB, etc (or some other pricing curve).  So supply (space in a block) can actually increase as demand increases.

You might be able to look at historical block size vs price information to actually price this... it does not need to be perfect since an error will just move the graph a bit.  The biggest concern would be if exponential BTC price increases (vs fiat) makes the minimum fee way too high.  In that case, we are no worse than today's proposal.

I assume a fee market will be ready by then, or by whenever block scarcity becomes an issue.

Blocksize debate blowing up all over /r/Bitcoin right now, though it's mostly pro-increase.