2 Comments
Apr 4Liked by Peteris Erins

The answer to the question in the heading is that it is unsatiable, just as our devices demand for cpu cores and ram are unsatiable.

But blockchains are subject to the requirement that they keep track of one canonical order of events, and therefore they will remain the most limited technology in terms of raw processing power out of any. All transactions must reconcile with each other, and that puts limits on how much capacity they can have and also means that eventually, there *must* be a premium paid for blockspace that is about equal to the value of using them.

Expand full comment
author

Completely agree Rex that "infinite supply" is a meme.

I think your point is exactly right in the context of a single blockchain.

One could try and challenge that and say that blockchains are horizontally scalable as a whole but then I think you run into in limitations around the validator set. Overall "security capacity" of current and potential validators is capped and can only support so many chains.

Expand full comment