So with the ever growing backlog of transactions and ever increasing transactions fees on the bitcoin segwit blockchain I figured it was time for a new approach to taking bitcoin transactions off-chain. If you believe core developers and small block fanatics bitcoin will never be able to scale on chain so radical new ideas are needed to make bitcoin usable for every day people. So her is my proposal.

First since transactions can't be settled on chain readily we will need some other medium to transfer the value. I suggest a one time printing of a large number of notes and coins. These notes and coins should have simple values of things like 1 bit, 10 bits, 100 bits, 1mbtc 5mbtc 10mbtc 25mbtc 100mbtc 250mbtc and finally 1btc. Each coin and note should contain a public readable key clearly visible on the outside and a private redeemable key hidden via security measures. Coin could be 2 part with the private key laser etched inside a hollow space in the coin and covered by a security seal before being glued or welded together. Outside would be an etched qr code and a denomination of the coin. Coins could be made of different materials and of different sized for easy recognition of value. Bills would be made of some material either plastic or fabric made from special cotton blends. Physical dimensions should be standardized so that bills can fit into a device for easy carrying. For simplicity we will call these carrying devices "wallets" The private key could be protected using either a scratch off material or security thread hidden inside the bill. A qr code with the public key and a denomination should be clearly visible on the outside of the bill.

Next we will need someone trusted to print and distribute these notes. As noted by core developers miners cannot be trusted this should go to a known secure service or services. Let's see who is good a making and distributing coins and bills? Mints. The making of the bitcoin coins and bills could be handled by existing mints.

Now we need a way to get these notes and coins to the people. What system is there in place to do this? Why banks of course. Banks could hand out and take these coins and notes, verify they are still in good shape, and even exchange for other fiat currencies. All of this would make KYC/AMA a breeze at the same time

Finally we need a system for replacing lost of damaged notes. Whenever a note becomes unusable for some reason it would need to be replaced. How could this be done. Well it could be done one of 2 ways. If the private key is still in tact it could be redeemed on the blockchain or traded at a local bank to be sent back to the mint for re-issuance. Redeeming on the blockchain would require a transaction so is not recommended except as a last resort. If the private key is damaged or unreadable for some reason the mint could redeem the coins for reprinting using and already in place system: RBF. They would simply go back though their database, find the note that is damaged, and crate a transaction with a higher fee to take the coins back to be used for other note(s) later.

You end up with a well know method for exchanging value between people. Just hand them the note with the correct bitcoin denomination on it. Machines could scan QR codes on coins as they are inserted for easy dispensing of your favorite snack or beverage. There would be little need for on chain transactions except those between banks and mints. Max blocksize could even be decreased to a fraction of it's current size say 300k? The only drawback is the initial transactions to create the notes and large utxo set it creates by doing so. Governments would even love it as it makes everything traceable and gives them full control to take away coins from "bad guys" just by contacting the mint.

Now we just need someone with the technical writing ability to get this into a BIP.



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If you got here and haven't figure out this whole thing has been sarcasm then well there is no hope for you. Unfortunately it seems there are some that would embrace such a system.

So why am I writing this. Well I just needed a good rant. As a user I'm tired of watching bitcoin be torn apart by a few over something that should have been taken care of 3+ years ago. So much hate over a simple 1-x change. Bitcoin (and I don't even like to call it bitcoin anymore because segwit isn't bitcoin) is no longer what bitcoin was supposed to be. It's not longer fast, cheap, secure or even currency. It's been forced to a purely speculative asset.

People like me that mined and used bitcoin have been forced to all but stop using it. My mining wallet (which is a full node) is full of coins that can't be moved because the inputs are lower than the fees to move them. Thousands of dollars that are useless now. Even if I could move them where would I spend them? Businesses have been forced to quit taking bitcoin. What's even worse is I still see businesses that take only bitcoin supporting 1x while the people they support make support others making death threats against businesses that would dare treat bitcoin as a currency. The whole thing would be laughable if it weren't true. How did it come this far? People and companies that invested to make bitcoin work and be adopted have become the enemy of the developers. You can't make this stuff up. Well maybe some government agencies and banks can........

Frankly I hope that bitcoin cash becomes the dominant chain and leaves segwit in the dust. Unfortunately I have doubts that bitcoin in any form will be the dominant coin in a few years. It's loosing if it hasn't already lost first mover due to all the infighting. I still hold nearly equal amount of coins on both chains so if they both do well that would be great but if I had to choose I would take bitcoin cash for one main reason. It's the original be your own back for the unbanked coin.