Justus Ranvier, crypto commentator and reviewer with Open Bitcoin Privacy Project, proposed in an essay that the idea of block size limits is based on economic fallacy. He writes that if price discovery were instead introduced to the Bitcoin network, no block size limits would be needed.
“My proposal is: stop trying to solve the problem of how to make sure people don’t use too much of a resource that’s being provided for free. Instead, figure out how to allow users of network resources to pay the providers of those resources.”
— Justus Ranvier
In terms of application, once the “price” of any given transaction is discovered, says Ranvier, Bitcoin’s nodes, miners, and users could pay one another directly for bandwidth, information and hardware-driven services via existing micropayment channels.
It seems almost political: The Bitcoin block size debate is presented as having only two sides – like red vs. blue. Republican vs. Democrat. Conservative vs. liberal.
And as is common in politics, this two-options-only paradigm may also be false when applied to Bitcoin. We asked Ranvier to tell us more about his idea for a “third option.”
“Any attempt to set a protocol-defined policy relating