With the bitcoin network inching closer to its limit, it is expected to malfunction early next year. With more and more delaying of transactions, the system of money now worth $3.3 billion will struggle to survive as its flakiness drives people away, predicts Gavin Andresen, bitcoin core developer.
He foresees the imminent doom by early next year if the system isn't fixed. Speaking to MIT Technology Review, he said,"It is urgent. Looking at the transaction volume on the Bitcoin network, we need to address it within the next four or five months. As we get closer and closer to the limit, bad things start to happen. Networks close to capacity get congested and unreliable. If you want reliability, you'll have to start paying higher and higher fees on transactions, and there will be a point where fees get high enough that people stop using Bitcoin."
In an attempt to fix the problem, he released his solution in the form of an alternative version of the Bitcoin software called BitcoinXT and urges the community to switch over. However, the proposed solution has caused uproar in the cryptocurrency ecosystem.
If 75 percent of miners have adopted his proposal after January 11, 2016, it will set off a two-week grace period and then allow a "fork" of the blockchain with higher capacity, notes MIT Technology Review. While some section of the community is criticizing it; Andresen, who now works on Bitcoin with the support of MIT's Media Lab, says it is necessary to prevent the currency from strangling itself.
When asked that whether the bitcoin community will reach a consensus, Andresen added, "It's pretty clear that the maximum blocksize is going to increase. I don't know exactly how or exactly when. I don't think it's clear yet that my proposal will generate enough consensus among miners and the other ecosystem players."
