A staff of researchers from the Bitcoin Coverage Institute, a nonprofit assume tank, have roundly rejected the conclusions reached in a 2022 paper claiming that Bitcoin has an intrinsic scaling downside that can result in restricted adoption sooner or later.
In response to the Bitcoin Coverage Institute’s researchers, the unique paper, dubbed “Bitcoin’s Restricted Adoption Drawback,” relies on three defective assumptions.
First, the authors of the unique paper declare that funds on the Bitcoin (BTC) community require full community consensus for settlement. Second, they assert that the addition of miners to the community prolongs time to settlement by “delaying community consensus.” Third, they declare there’s an higher restrict on Bitcoin funds because of the structure of Bitcoin’s blockchain.
The Bitcoin Coverage Institute researchers reject every premise in a just lately printed paper cheekily titled “Bitcoin works in follow, however does it work in principle?”
The institute researchers, who hail from six completely different prestigious universities in america, declare that the so-called “restricted adoption downside” is theoretical and counterintuitive to the truth of how Bitcoin operates:
“Hinzen, John, and Salah argue that the design of the Bitcoin protocol leads to a damaging community impact. […] That is an fascinating theoretical consequence, however rests on defective assumptions about how bitcoin truly works.”
In rebuking the primary paper’s assertions, the institute researchers argue that its authors “essentially misunderstand how Bitcoin achieves consensus and the way the entry and exit of miners impacts the timing of recent transaction blocks” and that their analysis ignores “current, widely-implemented scaling options.”
Whereas the institute’s analysis paper does conclude that the work being criticized involves a sound conclusion — particularly, that “Bitcoin’s blockchain doesn’t scale effectively for on-chain funds” — it additionally factors out that these scaling points have been identified since Bitcoin’s inception and have thus been correctly mitigated within the time since.
In the end, the institute staff observes that the unique paper’s authors are “tilting at windmills” as a result of Bitcoin “scales by means of off-chain funds, not by rising throughput on the base layer. Off-chain protocols afford extra scalability exactly as a result of they don’t require consensus of the whole community.”
Associated: Bitcoin assume tank: Reject CBDCs and look to BTC and stablecoins as a substitute
