Thursday, December 5, 2019

Brendan Blumer, Block.One’s CEO Says Bitcoin Has Huge Scaling Limitations

Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering [email protected] [email protected]

Brendan Blumer, CEO of Block.One & EOS proponent recently pointed out what most people view as Bitcoin’s limitation. That is, its scalability and high transaction fees especially when the block rewards to miners are reduced. In the CEO’s opinion, Bitcoin has high scaling limitations, according to a media report on April 8.

Blumer Makes Comments While at 4th annual DC Blockchain Summit

Per the report, Brendan Blumer while at the 4th annual DC Blockchain Summit 2019 which held in March made some comments. He first commended Bitcoin for being fundamentally transformative in the aspect of reforming the traditional financial transactions and its limitations.

However, the CEO said Bitcoin is not scalable by handling 3 transactions per second. According to him, the speed at which the Bitcoin network operates is a huge scaling limitation. Blumer also pointed out that Bitcoin is expensive when considerations are given to the annual inflation of block rewards by miners. He said it could be around $50-$100 per transaction.

Twitter User Responds to Blumer’s Remarks

While these comments were made about a month ago, a Twitter user who recently stumbled on the video was not too happy about the CEO’s opinion. According to the user in their tweet, the CEO is spewing “lie after lie in service of his scam, EOS”, and “CEO of  @BrendanBlumer spreading ridiculous mischaracterizations about Bitcoin at a @DigitalChamber event.”

As a response, Blumer said he actually loves Bitcoin but his love for the virtual asset will not make it any fast or cheap. He also affirmed that Bitcoin has what it takes to succeed and in time, it will become the largest store of value in the world. However, EOS was not created to compete with Bitcoin but to have other use cases, he added.

EOS Blockchain Reaches Milestone of 80 Million Actions in 24 Hours

Reportedly, EOS blockchain has hit a new milestone where the number of actions processed in a day incremented. It went as high as 80 million within 24 hours thereby denoting an average of 800 transactions per second. CarbonUSD, a stablecoin also announced recently that they are transferring to the EOS blockchain.

More news in that direction was from Daniel Larimer, Block.One’s chief technology officer (CTO) who revealed plans are still ongoing to release an EOS stablecoin. He added that “My stable coin ideas are pending legal reviews before publishing” and they will be overcollateralized.

Bitcoin, on the other hand, has been blasted in the past for not being highly scalable, but with the lightning network (LN), more transactions are being handled per second. The LN has also reached a milestone since its launch in March 2018. As of last month, it was able to reach a capacity of over 1,000 BTCs.

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