Blockchain infrastructure provider and bitcoin mining company BitFury Group has weighed in on the ongoing block size limit debate with its latest research report. As it is, some members of the bitcoin network are saying that the current block size has been limiting the amount of transactions that can be handled.
To address this, bitcoin developers created a new version of the bitcoin software called Bitcoin XT, creating a fork from the earlier Bitcoin Core version. This could cause a wide disruption in the network, with some entries in the blockchain not existing on one version or the other.
Block Size Increase
“Plans of block size increase are a subject of a heated debate in the Bitcoin community. The subject has gained increasing attention since the beginning of 2015, when the size of blocks started to approach the current hard limit of one megabyte. We study arguments for and against block size increase, and we analyze existing proposals by influential bitcoin developers to increase the block size limit,” BitFury’s report indicated.
The report went on to list the advantages and disadvantages of increasing the block size limit. BitFury noted that increasing the block size from the current 1MB could lead to more transactions per second and faster confirmation times. It could also mean more transactions for blockchain-based technologies such as colored coins, NASDAQ’s securities tracking system, Factom’s facts-on-blockchain system, and lower transaction fees.
Meanwhile, the cons include the disruption caused by a hard fork in the system, leaving larger blocks to propagate slowly. This could also increase the probability of a double spend, wherein a bitcoin user might use the same cryptocurrency under different transactions in each of the versions of the software. However, the report still concluded that increasing the maximum block size is the way to go.
“In order for the Bitcoin ecosystem to continue developing, the maximum block size needs to be increased,” it read.