Author: Natanael 2015-02-12 15:54:19
Published on: 2015-02-12T15:54:19+00:00
On February 12th, 2015, Mike Hearn made a statement regarding the scorched earth protocol, saying that the bad pool isn't being paid by users, instead users are being paid by the bad pool. However, there is a counterargument that with zero-conf but no replace-by-fee scorched earth, there would be a market which thieves use where pools would offer to execute doublespends that pay the thief and the pool, and where the pools would set what terms and payouts they ask for. All bidding pools with acceptable terms get a doublespend transaction that pays that specific pool and the thief, the first to mine theirs win (and the merchant loses). The protocol requires less setup but there's no notable difference in security for merchants.
Updated on: 2023-06-09T16:50:54.929990+00:00