Author: Peter 2022-08-16 16:05:32
Published on: 2022-08-16T16:05:32+00:00
The Prisoner's Dilemma and Bitcoin have differences in that prisoners cannot communicate, while large Bitcoin holders can communicate with each other. Additionally, prisoners must make an all or nothing decision while miners can join and leave the network freely and change their decision based on others. The Bitcoin design allows for timely issuance of blocks even after the reward is exhausted. Miners earn money for including transactions, which is enough to motivate human nature. Transaction initiators also have an incentive to mine and run full nodes for personal interest. Mining with waste electricity reduces losses and is another incentive to motivate human nature. Reselling spare electricity requires an expensive license that is not always available. Finally, Bitcoin holders can be enfranchised into any new system, making it unnecessary to bike shed the original design, which is a Schelling Point.
Updated on: 2023-06-15T22:34:40.814159+00:00