Author: Hector Chu 2015-08-05 09:18:28
Published on: 2015-08-05T09:18:28+00:00
The discussion on bitcoin-dev mailing list in August 2015 revolved around the existence of a fee market for Bitcoin. Benjamin argued that Bitcoin lacked a mechanism for demand and supply matching, hence there was no fee market. However, inefficient markets could still exist with imperfect matching mechanisms. Another participant pointed out that demand and supply were reflected in BTC/USD and average transaction fee levels multiplied by the average transaction volume rate. Miners could benefit from varying block size to maximize profit based on these prices, but they currently were unable to do so. A dynamic block size voted on by miners periodically, either on or off the blockchain, could help rectify this inefficiency. It was suggested that a prediction market for block size, involving informed participants (miners), could be used to determine the block size. The technical implementation of using the determined block size was left as another matter.
Updated on: 2023-06-10T18:10:56.936653+00:00