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The Bitcoin Cash network has completed its latest upgrade which essentially implemented the highly anticipated adaptive blocksize limit (ABL) algorithm. The new feature will make it much easier to change the block size limit in order to meet the demand of the network’s throughput. As of 9:24 a.m. Eastern Time on Wednesday, five blocks have been mined under the new consensus rules.
Bitcoin Cash Rolls Out ABL Algorithm in Latest Network Update
Bitcoin Cash has successfully completed the chain’s latest upgrade which introduced “ac-0353f40e,” otherwise known as the adaptive blocksize limit (ABL) algorithm. The implementation aims to automatically adjust the block size limit using a specialized algorithm. This change aims to streamline the process of resizing the block limit in response to the actual transaction load on the network, eliminating the need for manual consensus, which can be both time-consuming and vulnerable to social attacks.
Since 2015, large block supporters have argued that increasing the block size limit is essential for scaling the network and achieving widespread adoption as a peer-to-peer electronic cash system. ‘Big blockers’ believe the original vision of Bitcoin, as outlined by Satoshi Nakamoto, emphasized low transaction fees and fast confirmations, which larger blocks can facilitate by accommodating more transactions per block. Proponents further contend that the 1MB block size limit in Bitcoin creates a bottleneck, leading to higher fees and slower transactions, making it less practical for everyday use.
By increasing the block size, Bitcoin Cash aims to provide a more efficient and scalable solution, ensuring that it remains accessible and practical for global transactions. The new algorithm ensures that Bitcoin Cash can adaptively and efficiently manage its block size, maintaining the network’s strength and responsiveness to changes in usage without altering the underlying game theory or incentives. By automating this process, Bitcoin Cash reduces the ‘meta costs’ involved in manual adjustments and shields itself from potential disruptions during consensus.
Technically, the adjustment algorithm operates on an exponentially weighted moving average (EWMA) of past block sizes to determine the appropriate block size limit. This calculation involves a ‘control function’ and an ‘elastic buffer function’, which work together to adapt the block size dynamically. The control function reacts to changes in block size by adjusting the block limit incrementally, ensuring smooth and predictable changes. Meanwhile, the elastic buffer provides additional headroom for sudden increases in block size, accommodating bursts in demand without straining the network.
These adjustments are mathematically defined and parameterized to ensure that the block size adapts effectively to real-world conditions, balancing stability with flexibility. The algorithm sets a minimum floor value for the block size and can respond to increases in block utilization, adjusting the limit upwards as needed while ensuring the network remains efficient and secure. On Reddit, BCH supporters were quite pleased with the latest upgrade. One Redditor wrote that the change may have “effectively solving the scaling debate, possibly forever.”
“[Bitcoin Cash] has solved onchain scaling,” the Redditor added.
What do you think about the Bitcoin Cash upgrade that occurred on Wednesday? Share your thoughts and opinions about this subject in the comments section below.