Author: Stephen Pair 2013-02-14 02:44:11
Published on: 2013-02-14T02:44:11+00:00
In an email conversation between Gregory Maxwell and another individual on February 13, 2013, the issue of centralization in Bitcoin was discussed. Maxwell noted that one of the beauties of Bitcoin is that miners have a strong incentive to distribute blocks as widely and quickly as possible in order to get a good feed of profitable transactions that they want to mine. This means that there would not be an issue with blocks being "jealously guarded". The businesses of relaying and mining are relatively easy to operate and there will be many of them competing on fees. If these businesses ever became too centralized, other businesses with a vested interest in the success of Bitcoin would take necessary steps to ensure adequate decentralization. Maxwell also pointed out that the centralization that currently exists in the fiat currency world benefits one set of businesses to the detriment of many others. The economics of Bitcoin are unlikely to yield the outcome of centralization.
Updated on: 2023-06-06T10:04:04.972874+00:00