I don't know what you mean by replace fiat currency, exactly, but that wasn't the post I was replying to. parent post eluded to BTC's famously extremely low throughput rate. All I was saying is that this low throughput is not a feature of crypto, it's a feature of the very bad design of Bitcoin that was never improved. This is to be expected- BTC was a basically brand new thing and nobody expected that it would ever be in a position that it needed to provide visa-level throughput.
It's problem is that the Bitcoin development community is allergic to improvement in a way that, for example, Ethereum is not. Ethereum never would have existed if the BTC community was open to developing the protocol.
RE: Other crypto with proper consensus mechanisms that have better throughput: ETH's L2 ecosystem is reasonably fast - something like 19000 TPS sustained was achieved recently, with an average around 10000 TPS and an instantaneous peak of around 24000. This is just an organic number - it certainly could go much higher, there just isn't demand for those transactions right now. It's hard to say how fast it could go.
RE: your last point, Solana is junk - it abandons proper consensus mechanism in favor of throughput. It's subject to all the same problems that delegated POS systems have because that's what it is.
How does this work? It feels like moving all of this off the blockchain loses a bunch of the supposed value.
If I move to a “side chain” do I get to keep the guarantees around settlement? I would assume no, not until this gets worn back to the block chain.
I think I understand (theoretically) how the side chain would increase throughput and reduce transaction fees, but these benefits as I understand them come specifically from making the side chain high volume. If I need to do one transaction with you, the side chain is redundant, right?
> RE: your last point, Solana is junk
Good to know. I only know what I learned in maybe 20 minutes of research.
Not all L2 are about throughput exclusively, some are, for example, more focused on private ZKSnark based transactions. There is a huge quantity of development out there.
Generally the security guarantees on L2 range from identical to the main chain to 'good enough' to 'I pinkie promise not to take your money'. It's a permissionless protocol so that's kinda what you get.
It's problem is that the Bitcoin development community is allergic to improvement in a way that, for example, Ethereum is not. Ethereum never would have existed if the BTC community was open to developing the protocol.
RE: Other crypto with proper consensus mechanisms that have better throughput: ETH's L2 ecosystem is reasonably fast - something like 19000 TPS sustained was achieved recently, with an average around 10000 TPS and an instantaneous peak of around 24000. This is just an organic number - it certainly could go much higher, there just isn't demand for those transactions right now. It's hard to say how fast it could go.
RE: your last point, Solana is junk - it abandons proper consensus mechanism in favor of throughput. It's subject to all the same problems that delegated POS systems have because that's what it is.