Author: Hector Chu 2015-08-05 10:51:37
Published on: 2015-08-05T10:51:37+00:00
In this email thread from 2015, Adam Back is discussing the Flexcap idea proposed by Greg Maxwell and Mark Friedenbach. This idea aims to achieve effects without giving miners control and thereby avoiding side-effects. The market being discussed would be open to all, however, miners would be best placed to profit from it due to their knowledge of the revenue/costs tradeoff. Back argues that there are limits to the alignment of miners with security and user utility. In terms of the block size, Back suggests that if it were increasing at every settlement date and users became concerned about centralization, the block size prediction market would tend to go down. As a result, BTC/USD would also decrease, reducing miner profit and indicating to them that the block size is too high. Moreover, transaction rate would decrease as some users stop using Bitcoin, which would further decrease miner profit.
Updated on: 2023-06-10T18:10:01.328882+00:00