A new study by the Initiative for CryptoCurrencies and Contracts (IC3) at the Jacobs Technion-Cornell Institute authored by Christian Decker, Ittay Eyal, Andrew Miller and Emin Gün Sirer, among others, found that bitcoin’s blocksize could currently scale up to 4MB without affecting decentralization.
According to the recently released position paper, On Scaling Decentralized Blockchains, 4,000 Bitcoin nodes were tested and per-node bandwidth performance was measured. The study found that 90%, of the then, 4565 bitcoin nodes (currently standing at more than 7,000), can continue to operate at 4MB blocks, translating to approximately 27 transactions per second, far more than the current practical limit of approximately 2.5 transactions per second.
The study [PDF] reveals some striking results in showing that 50% of bitcoin’s nodes, that is approximately 2,500 nodes, would not be affected by a blocksize of just under 40MB, translating to 250 transactions per second or approximately 10 million transactions a day. Furthermore, 10% of the bitcoin network, that is almost 500 bitcoin nodes, can today operate under a blocksize