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Bitcoin Is for Business

By Craig Wright | 20 Nov 2018 | Bitcoin & Blockchain Tech

The goal of Bitcoin is to be cash, but there is only one way to achieve this. Bitcoin must be a commodity ledger. To be money, Bitcoin cannot be a speculative gambling asset. For many, this short-term zero-sum game and “get-rich-fast Ponzi” are all Bitcoin means. To them, Bitcoin is all about HODL and the false idea that money and value come from simple scarcity.

If scarcity alone made something valuable, then many unwanted things would be collected and exchanged. An example is an old Telex. This obsolete technology is extremely hard to find now, and yet it remains worthless. Value does not come from scarcity, rather scarcity allows things that are in demand to be traded at the margin.

For money to have value as cash, it needs to be more than a simple speculative asset. That is, as cash, Bitcoin is not simply a tool to gamble with.

This is why we are accelerating growth and looking at real uses of the Bitcoin ledger.

Bitcoin is for business.

Bitcoin was never about removing banks and government. It is sound money, a stable supply, and an efficient and audit-able ledger. All of the things that those seeking anonymity and anarchy oppose are at the heart of Bitcoin.

As a commodity ledger, Bitcoin has value outside of speculative gambling and market guessing. It has value to a business seeking a stable and secure ledger. More, contracts can be created on the platform that allow businesses to integrate other services.

In testing yesterday, we managed to achieve a peak of 1,500 transactions per second, and created the largest blocks on any public blockchain at 64 MB. This is far from the end. In the next 6 months we will scale our systems and propagation limits to allow the propagation of transactions at a rate exceeding 2,500 TPS (transactions per second) at peak and a plan for a sustained limit as documented below:

    • 6 months — 512 MB
    • 12 months — 2.0 GB
    • 18 months — uncapped (no limit)

A block cap of 512 MB is equal to a sustained transaction rate of 2,000 TPS (settled). This processing level exceeds the combined peak rates for Ripple XRP, Ethereum (ETH), Bitcoin SegWit (BTC), and all other cryptocurrencies combined with the transactional ability of PayPal. The claim of Ripple in the LAB of 1,500 settlement exchanges (and not real transactions/sec) coupled with the real sustained 175 TPS of XRP’s reality shows just how important this is.

The 12-month goal of an ability for handling sustained 2.0-GB blocks allows a combined transaction rate of 8,000 TPS settled, and allows to handle up to Visa-level transaction volumes (not what they do in a lab, but the real world).

With Tokenized as a secure platform for issuing securities that are able to be legally registered with bank-issued digital fiat on Bitcoin, we would be able to have all debit-card and other payment traffic on our chain for less than Visa or MasterCard can do.

Past this, we are looking to 1-TB blocks and no limits.

In tests on the live network last night, CoinGeek, SV, and affiliated companies managed to record a maximum transaction rate of 1,500 TPS sent to the network. Today, the PayPal network only processes 194 TPS.

Welcome to the future of finance.

Today.