CryptoCurrency : I think I found a viable solution to Bitcoins scaling issue. And its actually very simple.
So I have mulled this over a bit and made a video about it as well. I am about 95% sure this can work and it can work very well.
It started off as a joke. I thought it was funny at the time. Then it occurred to me that this is a viable solution, as far as I can tell, that pretty much solves scaling issues with not only Bitcoin but all slower pure currency coins. This can transform Doge into 3 second transaction times with zero fees coin. Best yet, its possible to get something like this up and running right now. There is no need to wait, any dapps dev can probably make something like this very quickly.
Now in the solution I use EOS as an example but any high TPS dapps capable coin can work to make this solution possible. LOOM can work, NEO can work, X fast dapp coin can work. It just needs dapps and to be fast. Those are the two most important things.
So here is the basic breakdown of the solution.
– You make a dapp that can utilize a Bitcoin wallet.
– Allow the dapp to generate additional wallets that have very specific denominations of satoshis in them.
So these wallets end up being kind of like actual coins. Its a wad of Sats that is meant to be a specific denomination just like fiat cash is right now. (1 dollar, 5 dollars, 10 dallars, 20 dollars ect.)
So for example you have 1000 USD of BTC and you decide to turn that into a bunch of these wads. You make a bunch of 0.01 and 0.001 and maybe some 0.0005 wads. So the dapp generates these wads and the transaction is saved on the dapps blockchain as a transaction history.
– Only the dapp is able to know what the private keys are for each of these wads. Humans are never allowed to know what the key is. (This is the hardest part that has to be solved, I am very sure it can be solved though. But the private keys have to be something that only the dapp is allowed to know.)
So what we now have is a bunch of wallets that are setup to specific denominations just like cash. And the existence of these wads and transaction history is tracked on the dapp blockchain. Transferring these wads will encore no transaction fee and will be able to happen at the speed of the dapps coin. In this case lets say you use EOS / LOOM then you have bitcoin moving around with zero transaction fee and 3 second transaction times. All you have to do is trade these wads using the dapp.
Dirt simple, compared to lightning network and its absolutely viable right now. The only fee you will have to worry about is the transaction fee to print the wads. But once printed they can be used infinitely.
Now there is one more detail about this. If the dapps are able to obtain the private key for each of these wads then anyone can decide to melt the wad back to pure Bitcoin again back into their wallet. So you can convert back to normal bitcoin any time you want.
Its such a simple solution. We can transform Monero or Doge into basically Nano with a single dapp on any of the many faster dapps capable coins. I feel like this pretty much solves scaling. Call it a layer two solution simply using later generation crypto as a base. No more waiting, no more vaporware, no more speculation.
Bitcoin pretty much doesn’t have a scaling problem anymore. Not if this solution can work.
I normally talk badly about Bitcoin but something like this almost makes me Bullish on it. With a solution like this the blocksize can be reduced to 250kb and you can still use it to buy coffee. And the transaction can take 3 seconds as well!
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