That makes a lot more sense that many transactions are included within a block. So effective transaction fees are likely in the few cents USD range.
I've read that one issue with the latency of Bitcoin transactions is that many of the large miners from China have network issues. Would raising the block size to 10-100MB cause significant latency issues for transactions even if one could fit a lot more transactions into a single block?
> Would raising the block size to 10-100MB cause significant latency issues for transactions even if one could fit a lot more transactions into a single block?
There are two ways to understand your question so I'll just answer both of them:
Fitting more transactions in a block leads to faster confirmation, and potentially lower fee. When a transaction gets into a block, the network confirms that the transaction is valid and can't be reversed. Right now each block can only fit ~2k transactions, and since a block can only be generated every 10 minutes, the mempool (backlog of unconfirmed transaction) is rather huge. This site shows how big it is: https://jochen-hoenicke.de/queue/. Miners are incentivized to only select transaction with high fee into the next block, which in turn incentivizes users to pay more fee to get their transaction to confirm faster. With bigger blocks, more transactions get confirmed quicker, which leads to lower fee.
Bigger blocks however mean miners with slow internet connection are at a disadvantage. When a miner finds a winning block, they broadcast the block to as many nodes in the network as possible. After a while, a majority of nodes accepts that winning block, and the miner is eligible for the mining reward. If A finds the winning block 10 seconds after B, but A is able to propagate their block quicker than B, then it's possible that A's block is accepted and not B'. In reality, it's possible that B might still win the race, but the rule is: faster propagation => more chance of being accepted.
That makes a lot more sense that many transactions are included within a block. So effective transaction fees are likely in the few cents USD range.
I've read that one issue with the latency of Bitcoin transactions is that many of the large miners from China have network issues. Would raising the block size to 10-100MB cause significant latency issues for transactions even if one could fit a lot more transactions into a single block?