Bitcoin Cash Upgrades and Introduces New Algorithm, Automatically Adjusting Block Size Limit Based on Demand

According to a report from Bitcoin.com, the Bitcoin Cash network has completed its latest upgrade, implementing the much-anticipated Adaptive Blocksize Limit Algorithm (ABLA). This new feature will make it easier to change the block size limit to meet the network’s throughput demands.

Bitcoin Cash activated ABLA in its latest network upgrade. On Wednesday the 15th, Bitcoin Cash successfully completed the upgrade of its blockchain, introducing the “ac-0353f40e” or the Adaptive Blocksize Limit Algorithm. The goal of this implementation is to use a specialized algorithm to automatically adjust the block size limit. This change aims to simplify the process of adjusting the block size limit based on the actual transaction load of the network, eliminating the need for manual consensus, which is time-consuming and susceptible to social attacks.

Since 2015, proponents of larger blocks have believed that increasing the block size limit is crucial for network scalability and widespread adoption as a peer-to-peer electronic cash system, as outlined in the original vision of Bitcoin creator Satoshi Nakamoto. They argue that the larger blocks can facilitate low transaction fees and fast confirmations by accommodating more transactions per block. Supporters further claim that Bitcoin’s 1MB block size limit has created a bottleneck, resulting in higher fees and slower transaction speeds, making Bitcoin less practical for everyday use.

By increasing the block size, Bitcoin Cash aims to provide a more efficient and scalable solution, ensuring its accessibility and usability in global transactions. The new algorithm ensures that Bitcoin Cash can adaptively and effectively manage its block size, maintaining network strength and responsiveness to adoption changes without altering the underlying game theory or incentive mechanisms. By automating this process, Bitcoin Cash reduces the “common costs” involved in manual adjustments and protects against potential interference in the consensus process.

Technically, ABLA determines the appropriate block size limit based on the exponential weighted moving average (EWMA) of past block sizes. This calculation involves a “control function” and an “elastic buffer function” that work together to dynamically adjust the block size. The control function gradually adjusts the upper limit of the block to accommodate size changes, ensuring smooth and predictable variations. Meanwhile, the elastic buffer function provides additional space for sudden increases in block size, accommodating demand without overloading the network.

These adjustments are mathematically defined and parameterized to ensure that the block size can effectively adapt to real-world conditions, balancing stability and flexibility. The algorithm sets a minimum lower limit for the block size and responds to increased block utilization by adjusting the upper limit as needed, while ensuring high efficiency and security of the network.

On the well-known overseas forum Reddit, BCH supporters expressed their satisfaction with the latest upgrade. One user wrote that this change could “effectively resolve the scaling debate, possibly permanently,” and added, “(Bitcoin Cash) has solved the on-chain scaling problem.”

Source: Bitcoin.com

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