Adam Back explains how the Lightning Network acts as a layer-two caching layer to expand Bitcoin's transaction throughput.
Assertion Not checkable as stated
Back: Everyone agrees Bitcoin needs a block size increase
“If we need to increase the block size, which I think everybody agrees with at this point in time.”
Prediction Not checkable as stated
Back: Raising Bitcoin block size to 1GB would cause network failure
“If we jumped up the block size to a gigabyte now, security would fail, the network would probably fail.”
Assertion Not checkable as stated
Back: Three or four colluding mining companies could influence Bitcoin policy
“You know, it's probably the case that you could, you know, If you could get collaboration from three, four companies in various parts of the world, you could start to apply some policy influence to Bitcoin.”
Disclosure
Back proposes scaling Bitcoin block size limit to 8MB over four years
“So the proposal I made was to increase to two megabytes failure immediately, as soon as we can roll out change, which to be clear, any of them would take about six months to roll out. Increase to four megabytes after two years, and eight megabytes after four y…”
Assertion Not checkable as stated
Back: 99% of Bitcoin transactions occur off the main blockchain
“Estimates are something like currently 99% of them are happening off the blockchain.”
Insight
Back: Massively scaling Bitcoin sacrifices decentralization, turning it into PayPal
“You can scale massively and lose the decentralization, and at that point, Bitcoin loses most of its distinguishing features, and you're left with a kind of PayPal situation With all the things people gripe about with PayPal.”