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Comment by spuz | Hacker News Reader

Remember that blockchain transactions are slow and FTX has over 1m users. Even in the most positive of scenarios, I would not be surprised if it took days to clear the backlog of withdrawal requests.

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Not sure what people are talking about here, bitcoin mempool doesn't even have a notably large backlog at the moment and fees are currently low/normal: https://mempool.space/

Exchange withdrawals are one to many for btc helping keep size down and most other chains shouldn't have any issues. Don't see how FTX or really any exchange should be bottlenecked by blockchains here.

It seems to my layperson’s eye that that would be a reason to get a loan for a week or a month, not to sell the company.

“How to destroy the entire basis for blockchain technology in 1 sentence”.

Indeed, all Bitcoin blocks today are full. There is no physical possibility to withdraw all those funds. That's why Binance must implement Lightning deposits/withdrawals, like Kraken did.

Adding L2 chains to this equation dumps the frying pan into the fire. We don't need more points-of-failure, it's bad enough as-is.

Inability to process more than 5 tx a second for entire world is a major point-of-failure that L2 chain cures.

Should’ve just increased the blocksize, instead of implementing some crap L2 solution.

Thats the same as to say: let's buy a couple more servers rather than replace bubble sort in our code by qsort.

Slow blockchain transactions and it would be shocking if they didn't stake user assets. Most (all?) proof of stake chains have lock up periods. Atom and other Cosmos chains are usually 21 days.

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