A summary list of all concerns related to not rising the block size



Summary:

Ashley Holman raised concerns about the correlation between hash rate and block size, assuming that hash rate is correlated with revenue from mining. The total revenue from fees as a function of block size should be a curve. At one extreme, if blocks are too big, fee revenue tends towards 0 as there is no competition for block space. On the other extreme, if blocks are too small, fee revenue is limited only to what the most valuable use case(s) can afford. Somewhere in the middle, there should be a sweet spot where fee revenue is maximized, which should change as demand for block space changes. Failing to scale the block size as demand grows might forfeit potential miner revenue and hence security. However, decentralization should come first before this concern.These concerns were already included in the potential indirect consequence of rising fees, such as having less users than we could have had with a bigger size and not having enough fees when subsidy is lower.


Updated on: 2023-06-10T19:15:17.989812+00:00