Gavin Andresen, Digital Currency Developer MIT Media Lab, does not need any formal introduction because he is someone who is well recognized in Bitcoin industry for his role since 2011. His views on Bitcoin have become important as according to him the digital currency is going through huge turmoil and if it is not addressed well, it may just be doomed.
He believes that expansion of block size has become necessary thanks to the decision made several years ago arbitrary manner to limit the number of transactions per second that the Bitcoin protocol can handle. According to him the way things are going, the digital currency Bitcoin will start to malfunction early next year.
Talking with MIT Technology Review, Gavin Andresen said that transactions will become increasingly delayed, and the system of money now worth $3.3 billion will begin to die as its flakiness drives people away. He predicts dooms day for Bitcoin as Bitcoin can’t process more than seven transactions a second which is quite less given the demand is increasing.
Nonetheless, he says that the processing of seven transactions a second is a tiny volume compared to the tens of thousands per second that payment systems like Visa can handle. He firmly believes that if the same system continues, it won’t be difficult to predict that by the early 2016, it would be difficult for the users to transact.
BitcoinXT is the Solution
Gavin Andresen has proposed a solution BitcoinXT where he urges the community to switch over as according to him if 75 percent of miners have adopted his fix after January 11, 2016, it will trigger a two-week grace period and then allow a “fork” of the blockchain with higher capacity.
Whereas on the one hand, his critics don’t agree with him as they consider that to be a reckless toying with Bitcoin’s future; on the other hand, Andresen says it is necessary to prevent the currency strangling itself. He says looking at the transaction volume on the Bitcoin network, there is a need to address it within the next four or five months.
In the interview he admitted that as Bitcoin gets closer and closer to the limit, bad things start to happen. Moreover, as networks close to capacity get congested and unreliable and of users want reliability, they would have to start paying higher and higher fees on transactions, and there will be a point where fees get high enough that people stop using Bitcoin.
To contact the reporter of this story: Deepak Tiwari at email@example.com