Even 50,000 people can open on-chain transactions in 100 or less on-chain transactions. Multiple transactions can be pooled together, remember? Coinjoin/Wasabi regularly does this with hundreds of people at the same time.
Discussion
Yeah I picked 50,000 as an arbitrary number. I don't see it being that realistic we'll just suddenly overnight have such a large number but regardless we can just x large number.
I know Exchanges can send to multiple outputs from 1 or more inputs. I've heard about Coinjoin/Wasabi but I haven't delved into it. Where can I find out more about this pooling of multiple transactions?
I thought Coinjoin was purely just for privacy. I just watched a video I made a mistake of assuming all inputs need to be owned by the same person. I need to read about it more but I never heard of it saying it can help with scaling.
50k ppl buy btc on exchange. They all want to withdraw, so 50k transactions are needed. Can you explain further on the 100 transactions or less.
I don't think there's anything wrong with current scaling solutions we have and will have in the future though as more interest builds. I just mean if overnight a major country just all switches to Bitcoin it's unrealistic to say it will handle well.
It's good that we have time to slowly build with adoption.
Re: CoinJoin, you have one transaction that has lots of people contributing inputs and outputs, every person in turn checks that their input is going to the right output, and signs their part of the transaction, then passes it on to the next one until everyone signed. It's no different from your wallet spending from lots of different inputs and just signing for all of them, except in this case you have each individual sign their part. I believe Taproot can optimize that even more by combining all the signatures together, though I'm not sure.
In the same way you can have multiple people coordinate to add their inputs and outputs to a transaction to onboard lots of people at the same time.
"50k ppl buy btc on exchange. They all want to withdraw, so 50k transactions are needed. Can you explain further on the 100 transactions or less."
Exchange creates 100 transactions, each transaction sending some amount to 500 people. Exchanges already do that, pooling transactions together. If you ever withdrew Bitcoin from an exchange and looked at your transaction, you'll see lots of money going to other addresses besides just your own.
"I just mean if overnight a major country just all switches to Bitcoin it's unrealistic to say it will handle well."
Currently probably not. 50,000 people is one thing. 350,000,000 is a whole other story. If that suddenly became necessary to do, for now the only/best solution may be custodial, where a "bank" already holds all the Bitcoin and has large lightning channels, and just does all the transactions for customers off chain on their own ledger.
Yeah I messed up regarding the 50k transactions are needed so badly lol, mind being foggy, I've seen on mempool when exchanges send.
Ty ill read more tomorrow.
But yeah I certainly not downplaying what btc can do rn, its fucking great.
Hey, speaking of this topic!
https://twitter.com/BitcoinNewsCom/status/1635587904238940168