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Bitcoin will soon block small transaction outputs

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Re: Bitcoin will soon block small transaction outputs

#61

Post by witten »

oillio wrote: post #23

Small value amounts are useful for smart property: https://en.bitcoin.it/wiki/Smart_Property The tl;dr: Represent a piece of property, say a stock certificate, as a small value of bitcoin. By transferring the bitcoin to another user, you are transferring the ownership of the property. This can be useful for creating distributed markets where property can be traded for bitcoins without requiring a trusted intermediary…

Why does the deposited amount of Bitcoin for smart property have to be a small value?

Re: Bitcoin will soon block small transaction outputs

#62

Post by mortehu »

icelancer wrote: post #60
rubinelli wrote: post #34

Earlier quoted context omitted.

When your transaction size affects my bandwidth and my hard disk, it becomes my business. Essentially you are acting like a spammer: wasting a disproportional amount of other people's computational resources for your gain.

But that's not his fault. That's Bitcoin's model's fault.

Let's just have the model pay for the transactions, then?

Re: Bitcoin will soon block small transaction outputs

#63

Post by GigabyteCoin »

tocomment wrote: post #35
GigabyteCoin wrote: post #31

Earlier quoted context omitted.

Funny, I always thought of it as a near perfect store of value and nothing more. The fact of the matter is that this is all Bitcoin has been used for so far (no company has used Bitcoins thus far for micropayments) so I think it will continue to evolve into an even more perfect store of value as time goes on.

Why do you think it's such a good store of value?

Mainly because it is impossible for anyone to take your bitcoins without your consent (if you know what you're doing, of course).

It's not like you can place a password on your gold to prevent authorities from seizing it as they have done in the past.

Re: Bitcoin will soon block small transaction outputs

#66

Post by crapnowwhat »

venomsnake wrote: post #64

No central authority - well at least until we hit a small technological bump and it becomes mildly annoying - then we will solve the problem with a decree or fiat.

Update changes a hard coded limit to a setting with a default value. IE easily changeable. So it's more like a guideline. So basically they went in the opposite direction of a dictate with this release.

Re: Bitcoin will soon block small transaction outputs

#67

Post by kolinko »

oillio wrote: post #23

Small value amounts are useful for smart property: https://en.bitcoin.it/wiki/Smart_Property The tl;dr: Represent a piece of property, say a stock certificate, as a small value of bitcoin. By transferring the bitcoin to another user, you are transferring the ownership of the property. This can be useful for creating distributed markets where property can be traded for bitcoins without requiring a trusted intermediary…

The problem is that Bitcoin is a distributed network, and therefore the whole blockchain needs to be replicated across all the computers across all the network.

Right now, the blockchain is around 9GB, most of it because of "dust" - that is, if you want to set up your own Bitcoin node, you need to download 9GB of data. And this is growing quite fast.

The practice of microtransactions was abused a lot - for example, SatoshiDice uses 1 satoshi (the minimum amount) transactions to confirm that a player lost. Or some other guys used the blockchain to embed WikiLeaks documents using the same hacks - right now everyone needs to download all this data.

tl;dr; it's not about caching and speed, it's about the amount of storage required to keep all the dust forever and ever.

Also, from what I gather from the commit - this is supposed to be just a temporary solution, and there is something better in order.

Re: Bitcoin will soon block small transaction outputs

#68

Post by kolinko »

fizx wrote: post #29
jasonkolb wrote: post #8

I assume the reason behind this is to block people from encoding data into the block chain by doing thousands of worthless transactions. If I recall correctly someone recently encoded the URL to a child porn site into the block chain, this is the only reasonable response to prevent it from happening again IMO.

Encoding data into the blockchain isn't a bug--it's a feature (perhaps THE feature). When you want distributed consensus (e.g. for free-as-in-speech domain names), it's the only game in town. People should be able to put whatever data they want in the system, assuming they cover the cost.

The problem with "dust" transactions is that they do not cover the cost.

Re: Bitcoin will soon block small transaction outputs

#69

Post by shabble »

GigabyteCoin wrote: post #63
tocomment wrote: post #35

Earlier quoted context omitted.

Why do you think it's such a good store of value?

Mainly because it is impossible for anyone to take your bitcoins without your consent (if you know what you're doing, of course). It's not like you can place a password on your gold to prevent authorities from seizing it as they have done in the past.

I'm not sure it's any more resistant to rubber-hose attacks ("What's your private key/passphrase?" vs "Where did you bury your gold stash?"). Perhaps a little more convenient, though.

Re: Bitcoin will soon block small transaction outputs

#70

Post by javert »

witten wrote: post #61
oillio wrote: post #23

Small value amounts are useful for smart property: https://en.bitcoin.it/wiki/Smart_Property The tl;dr: Represent a piece of property, say a stock certificate, as a small value of bitcoin. By transferring the bitcoin to another user, you are transferring the ownership of the property. This can be useful for creating distributed markets where property can be traded for bitcoins without requiring a trusted intermediary…

Why does the deposited amount of Bitcoin for smart property have to be a small value?

It doesn't have to be, but the larger the value is, the more bitcoin being "wasted" tracking smart property.
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