Re: [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal

From: Erik Aronesty <erik@q32•com>
To: Chaofan Li <li3939108@gmail•com>,
	 Bitcoin Protocol Discussion
	<bitcoin-dev@lists•linuxfoundation.org>
Subject: Re: [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal
Date: Mon, 22 Jan 2018 15:40:58 -0500	[thread overview]
Message-ID: <CAJowKgLJ2QmCGAwhUgW8foy-=8FK4FwzMxXYCNZoLaS=DXMCTg@mail.gmail.com> (raw)
In-Reply-To: <CANZDnNo2HMWGOZ4torXvpqjbq6SE=NLBLwysJzetrpurWBu+yw@mail.gmail.com>

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Without enforcement liquidity will diverge.

On Mon, Jan 22, 2018 at 1:46 PM, Chaofan Li via bitcoin-dev <
bitcoin-dev@lists•linuxfoundation.org> wrote:

> Hi ZmnSCPxj
>
> I dont think they need to be ENFORCED to be worth the same.
> If the two chains’ algorithms are the same , except some identifiers (eg.
> btc.0 btc.1）, they have no reason to have different value. If so, the
> market will adjust the value.
>
> Also, the total supply can be the same. The amount in blockchains  is just
> some numbers. The  wallet can display correct amount, according to the
> identifiers.
>
> The voluntary split is also backward compatible with old version
> transactions, they can be treated as tx for both chains and included in
> both chains later. For new version Tx after fork, some identifiers must be
> added , to mark the tx is for that chain only. The miners need to choose
> one chain to mine.
>
> After several voluntary splits , the Blockchain basically become a
> blocktree, new blocks are added to the leaves(eg. btc.00 btc.01 btc.10
> btc.11 ), providing even more capacity.
>
> Chaofan
>
>
> On Mon, Jan 22, 2018 at 5:13 AM ZmnSCPxj <ZmnSCPxj@protonmail•com> wrote:
>
>> Good morning Chaofan Li,
>>
>> What enforces that bitcoin A is worth the same as bitcoin B?  Or are they
>> allowed to eventually diverge in price?  If they diverge in price, how is
>> that different from the current situation with Bitcoin, BCash, Bitcoin
>> Gold, Bitcoin Hardfork-of-the-week, and so on?
>>
>> Regards,
>> ZmnSCPxj
>>
>>
>> Sent with ProtonMail <https://protonmail.com> Secure Email.
>>
>> -------- Original Message --------
>> On January 17, 2018 3:55 PM, Chaofan Li via bitcoin-dev <
>> bitcoin-dev@lists•linuxfoundation.org> wrote:
>>
>>
>>
>> Here I propose a simple method to solve the scalability issue of
>> blockchain.
>> It is more like a financial trick rather than a technical solution.
>>
>> The technical part is very simple:
>> Split ( hard fork ) the blockchain into two or more blockchains (e.g. two
>> blockchain A and B), voluntarily.
>> The two blockchains are the same except for some identifiers to
>> distinguish the two blockchains.
>> The coins on one blockchains cannot be sent to the other one or
>> interfered by the other blockchain (  considering so many hard forks in the
>> last year, the replay protection should work in this situation)
>> Everyone get double bitcoins. Each has half  value of original one
>> bitcoin.
>> Then, we have two almost same blockchains and the capacity of the
>> original blockchain is doubled theoretically.
>> When sending coin, the wallet should select one blockchain randomly and
>> try to send through only  one blockchain (If there is enough bitcoins)
>> I think it is a  possible solution, if the community realize  no
>> previously owned asset value  is lost.
>>
>> The method is inspired by the stock split
>> <https://en.wikipedia.org/wiki/Stock_split>.
>> When a stock share is split, for example into two shares, the price
>> halves.
>> The market capitalization remains the same.
>> There is no dilution of every shareholders' total assets.
>>
>> The bitcoin often emphasizes that the total coin supply should not be
>> changed.
>> If the total supply increases, the value of a single coin will be diluted.
>> That is true.
>> However, the bad part of inflation of fiat money is not  diluted value of
>> every unit of fiat money caused by total supply increase.
>> The problem is the increased supply is not delivered to everyone
>> proportional to their previously owned money.
>> The increased supply is released through debt expansion.
>> The people that can borrow more money with low interest ratio (during QE,
>> it was nearly 0) can invest  and get profit.
>> Or they don't even need to pay back the debt. The debt is left to
>> government, which might never pay back the debt, and some  get more money
>> from government.
>> Others' money are diluted.
>>
>> With voluntary split of bitcoin, dilution of anyone's bitcoin assets
>> won't happen.
>>
>>
>>
>>
>>
>>
>>
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