This content has been archived. It may no longer be relevant.
Peter Todd, a Core Bitcoin developer, has said that “Bitcoin should have had a 0.1% or 1% monetary inflation tax to pay for security”. He also warned that if it’s a hard limit is not changed in time, and it will die. He explained that the coin already has an inflation rate of 4%. He has used this fact to counter the debate that users of Bitcoin would fork away One method to get this done would be to cancel further halving (for miners). The next fork is expected in spring of 2020.
This concern over the Bitcoin is raised on the background of the fact that a few developers are worrying that if the fees become too cheap, it will not enable miners to operate any significant hardware. These hardware are crucial as they protect the crypto from any internal and external risks like a cyber attack. However, even this judgment or prediction has a counter.
Advertisement
If Bitcoin transactions are taking place at $0.10, but the network is growing to 10 MB with 3 million transactions/day, then it would come up to USD 300,000 a day. Now, this is precisely opposite to the Lightning Network which believed that it could gather multiple penny transactions into thousand dollar transactions. However, it did not pay attention to the reality saying that its users would still be paying huge fees to become a part of the network when the main network is clogged.
The Bitcoin network at present has inflation this is largely affecting its adoption rate. As a matter of fact, it recently had a chain split with Bitcoin Cash too. When it comes to creating a new network, the biggest hurdle is to gather support for the new coin. It is not just about investing hours in developing the network but the time goes in collecting the required support and then promoting for its adoption to increase the numbers of users and be able to capture the significant market share.
Dash Seems to Have a Solution to This
The first attempt made by Dash to deal with the security issue of mining is splitting the community on the basis of operations and responsibilities- Miners and Master modes. Miners who get 45% of block rewards, and masternodes, who get 45% of block rewards along with 1,000 Dash vested interests.
Advertisement
Dash did not stop here; it went a step ahead with the help of ChainLocks which made Dash more secure. It basically locked the first block recorded on the network at each height.
