It could’ve been done differently, couldn’t it?

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Ok I read the white paper, it doesn't seem to tackle the actual limit on Blockchains scalability which is that you can't start building work on top of...
It could’ve been done differently, couldn’t it? I mean, on a surface level, especially since bitcoin doesn’t deal with alternative tokens like hathor, you could make it so that every time one or more dag nodes are merged into the blockchain their history becomes pruneable and the block registers a squashed snapshot of the tx history (I guess something like when a LN channel closes).
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