Scaling should happen both on and off chain; on-chain scaling ought to result in a multiplier effect for off-chain scaling if done right.
Don't you think though nostr:nprofile1qqs0w2xeumnsfq6cuuynpaw2vjcfwacdnzwvmp59flnp3mdfez3czpspr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0yfjuhy that scaling will have to happen off chain? Obviously trusted third parties are the easiest way to scale. This is what things like blackrock or Strike may evolve into. Banks. Cashu is also a trust based solution. But then there are current and potential systems that make different trade offs and retain sovereignty. Like lightning at the cost of fiction. Or compromises like federated systems. Liquid. Fedimints.
I expect bitcoin banks will emerge that adopt systems that preserve trust minimisation.
Discussion
I agree. I am even for a conservative block size increase, because I think as technology evolves, we'll be able to handle that. But I also understand that many people are going to resist that, and I guess there in lies some of our problem, even if increasing the block size is not one of ways we code to scale on chain.
But I also see this as difficult because too much block size increase would certainly centralize the system. So it's a delicate dance we would have to do and the further we go down the road the harder it's going to be to make that kind of change period.
And perhaps most of all, a block size increase might grant us a brief reprieve, but we will never be able to increase the block size of Bitcoin to the point that it would be scalable on the base layer. So it must be another solution in my opinion.
Do you have other ideas for how scaling on chain could happen?