Bitcoin’s Possible Privatization: Has Blockstream Created Problem to Provide Solution?

By July 7, 2016Bitcoin Business

Is the scaling effort leading to Bitcoin’s privatization? NodeCounter.com accuses Blockstream of crippling Bitcoin for financial gain.

Since Blockstream got involved in the scaling of Bitcoin, the issue of Bitcoin privatization has sprung up.

Blockstream President Adam Back is of the view that a plan for scaling Bitcoin to handle more users over the next few years would double the on-chain transaction capacity on the network three years in a row, while simultaneously allowing for the development of layer-2 solutions , such as the Lightning Network , which could allow for millions or billions of transactions per second across the network.

To shed light on what it is, Back explained that Lightning Network transactions are real Bitcoin transactions that could be posted to the Bitcoin blockchain as a valid transaction though with a caching mechanism that collapses them so they don’t all need to be sent to the blockchain. Bitcoin Core in the pay of Blockstream?

However, a main critic of this plan is NodeCounter.com, which accuses Blockstream of “currently paying off many of the key Bitcoin "Core" software developers” and having “directed the crippling of Bitcoin in order to provide the solution, for their own future, financial gain.”

NodeCounter.com posted in a public service announcement : “These Blockstream-paid Bitcoin developers (for the Bitcoin "Core" software) are enforcing a limit on how much information can be transacted in Bitcoin. This is limiting the number of transactions to just 3 per second, approximately. Blockstream is concurrently developing a "solution" to this problem, called the "Lightning Network". This "solution" is to be placed on top of the crippled Bitcoin network to allow it to scale. Blockstream will monetize the Lightning Network in the form of fees required to use their service.” The following are views from two individuals with interest in the subject. Please […]

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