Author: Jeff Garzik 2015-12-16 14:53:58
Published on: 2015-12-16T14:53:58+00:00
In an attempt to adhere to the WP principle of Assume Good Faith, a user has attempted to summarize the key issues facing Bitcoin that are separate from Lightning Network (LN) and Segregated Witness (SW). This is due to the fact that there are still pressing economic and analysis issues that need to be addressed. The user creates multiple proposals and tries various angles to solve these problems. One issue is the "Fee Event" (FE), where the main chain MSG_BLOCK is 95% or more to the hard limit for seven or more days in a row. Another important issue is the block size, which requires a hard fork to increase. The guiding principle is to keep the Service alive, secure, decentralized, and censorship-resistant for as many Users as possible. Observations on block size reveal that it is economically modeled as a supply-limited resource over time, and it is available every 10 minutes with variance. Users, block size, and modern bidding process are interrelated, as a supermajority of hashpower currently evaluates block inclusion based on tx-fee/KB. However, blocks are not full on average, meaning that fees trend towards zero. Service provided to Users can be modeled at the bandwidth resource level as bidding for position in a virtual priority queue, where up-to-1M bursts are cleared every 10 min. Recent mempool changes float relay fee, making the Service more responsive to fast moving markets and DoS's.
Updated on: 2023-06-11T02:08:12.589025+00:00