All threads

Thread

BitcointalkJul 14, 20109 participants21 posts

Scalability and transaction rate

Summary

An early technical discussion in which Satoshi addressed whether Bitcoin could ever handle Visa-scale transaction volume, sketching out block size, bandwidth and the future role of specialized nodes. "The existing Visa credit card network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale much larger than that with existing hardware..."

Key takeaways

  • Satoshi's own view that the network could scale with hardware and specialization.
  • An early seed of the block-size debate that defined later Bitcoin politics.
  • Shows Satoshi thinking about Bitcoin as global infrastructure.

Historical importance

Among the most-cited primary sources in every later scaling debate — Satoshi's recorded position on the question that would split the community.

Major quotes

The existing Visa credit card network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale much larger than that with existing hardware for a fraction of the cost. It never really hits a scale ceiling.
Satoshi NakamotoJul 14, 2010source
If you don't believe me or don't get it, I don't have time to try to convince you, sorry.
Satoshi NakamotoJul 29, 2010source
In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes. I'm sure that in 20 years there will either be very large transaction volume or no volume.
Satoshi Nakamotosource

Sources