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                                                   Bitcoin Articles

                  The decentralized Bitcoin blockchain is globally shared broadcast medium-- probably the
                most insanely inefficient mode of communication ever devised by man. Yet, considering that,
                 it has some impressive capacity. But relative to highly efficient non-decentralized networks,
                not so much. The issue is that in the basic Bitcoin system every node takes on the whole load
                 of the system, that is how it achieves its monetary sovereignty, censorship resistance, trust

                cost minimization, etc. Adding nodes increases costs, but not capacity. Even the most reckless
                hopeful blocksize growth numbers don't come anywhere close to matching those TPS figures.
                And even if they did, card processing rates are rapidly increasing, especially as the developing
                world is brought into them-- a few more years of growth would have their traffic levels vastly
                                              beyond the Bitcoin figures again.

                No amount of spin, inaccurately comparing a global broadcast consensus system to loading a
                                                webpage changes any of this.

                So-- Does that mean that Bitcoin can't be a big winner as a payments technology? No. But to
                reach the kind of capacity required to serve the payments needs of the world we must work
                                                     more intelligently.

                 From its very beginning Bitcoin was design to incorporate layers in secure ways through its
                smart contracting capability (What, do you think that was just put there so people could wax-
                philosophic about meaningless "DAOs"?). In effect we will use the Bitcoin system as a highly
                accessible and perfectly trustworthy robotic judge and conduct most of our business outside
                 of the court room-- but transact in such a way that if something goes wrong we have all the
                evidence and established agreements so we can be confident that the robotic court will make
                   it right. (Geek sidebar: If this seems impossible, go read this old post on transaction cut-

                This is possible precisely because of the core properties of Bitcoin. A censorable or reversible
                base system is not very suitable to build powerful upper layer transaction processing on top
                  of... and if the underlying asset isn't sound, there is little point in transacting with it at all.
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