The Bitcoin Cash network is currently processing more transactions than Bitcoin did early August at exceptionally low fees, providing a vindication of the big-block scaling approach.
Bitcoin Cash, which forked off of the main Bitcoin chain at the beginning of the month, processed a high of 26,500 transactions the first week of August before tapering down to under 10,000 recently. This week, however, the transaction volume increased to briefly to 135,550 per 24 hours. This is more than the Bitcoin network handled on August 1st, which was 131,000 transactions. Bitcoin Cash was able to process this amount without any major congestion problems due to its 8mb blocks (compared to Bitcoin’s 1mb).
Bitcoin fees are close to all-time highs, no off-chain scaling yet
Present Bitcoin transaction fees are on a sharp rise, quickly catching up to previous all-time highs. In early June, the average Bitcoin fee reached its high of $5.50 per transaction during the period of peak network congestion. The following reduction in transactions, especially during the early-August period of uncertainty, brought the average fee down to $1.36. Now, the average fee is back to $5.28, almost at its previous all-time high.
Meanwhile, during the large spike in transaction volume, average transaction fees for Bitcoin Cash dropped considerably, from about $0.19 per transaction to about $0.01. The median transaction fee also saw a corresponding drop from $0.056 to $0.002. This demonstrates that the Bitcoin Cash network is able to handle a large transaction volume on-chain efficiently while keeping fees very reasonable.
A vindication of massive on-chain scaling, including Dash’s approach
The ability for Bitcoin Cash’s large blocks to efficiently process significant transaction volume while maintaining low fees demonstrates the validity of a big-block approach with on-chain scaling. Dash famously committed to a purely on-chain approach to scaling the network earlier this year, with over 400mb blocks down the road to enable the network to scale to 5,000 transactions per second. The surge in Bitcoin Cash transactions demonstrates that, in practice as well as theory, larger blocks can be an efficient way of handling large transaction loads without resorting to off-chain scaling, lending some credence to Dash’s long-term scaling plan.
“…without resorting to on-chain scaling, lending…”
I may be wrong, but I think you meant “… without resorting to ***off-chain*** scaling, lending…”
Small typo, fixed.
I will continue to buy a little every week. Thank you for the update Joel! https://uploads.disquscdn.com/images/b0700e9263e72a1a808bd3fa5a5282addf644ab3fd8766a84dace8449f5b5094.png
No problem, it’ll be interesting to see.
I am excited to see what bigger block will bring, I personally believe Big blocks and disk-size will meet certain thresholds. Those thresholds are linked to the sizes you can buy SSD’s and HDD common number include 128gb, 256gb, 512gb for laptops with only an SDD, and 1TB for HDD again for laptops. Also these limits apply for VPN prices, they substantially increase prices if you desire higher limits than that.
I believe the bitcoin node-count will drop substantially because of them, I don’t think enough others will pick up the slack, and those that do, will lead to centralization, like for example coinbase has incentive to run multiple nodes, but they also customize, and store extensive amounts of data, only needed to benefit them and there needed KYC and AML policy’s.
I would not be surprised at all if the bitcoin Node count will drop below, the DASH node count within 2 years or less.
I’d say within 6 months or less. It may seem like too fast but I do’t think BTC will be even top 5 in market cap in 2 years time.
I personally thought 2 years ago, that DASH would have reached the marketcap position that bitcoin cash has right now (number 3). Bitcoin cash only had to fork and tweak the original code of bitcoin core to do that, with what I understand was only one programmer.
Dash, is not getting it for free like bitcoin cash has, Dash needs to fight for every small gain, I am quite sure we will need at the very least Dash evolution. Do in the background lots of business activity going on. Business tend to have put allot more time and resources in choosing what cryptocurrency can deliver what they need, and some of them do realize. that Dash is a much better fit for them than bitcoin.
Virtually anything competent is better than the Buttcoin. Even NEM seems heaven sent in comparison. People realize the worth of things eventually. Cryptos and blockchain are still early adopters market. Even NEM would overtake BTC by at least 2020 (around the time McAfee cuts of his dick on live TV in accordance with his $500,000 BTC bet.)
Also Dash should seriously treat Monaco as competition. I made some money on its 435% bull run. Their vision really impressed me. Almost seemed right out of the PR/Marketing efforts of Dash.
The world is catching up and trash like BTC will fade into memory like that 90s Nintendo VR attempt.
Judging by the absolutely insane volume that BCH is getting these last two days, we may be witnessing the real “flippening” very soon. Evan was right about Dash and 400 MB blocks, if need be. Cut….dry….and simple.
Which is one of many reasons why I consider real world politics should be modeled after Dash.