Author: Billy Tetrud 2023-01-04 16:03:10
Published on: 2023-01-04T16:03:10+00:00
The security of Bitcoin is currently ensured by ~1.8% inflation and fees paid to miners, but if fees alone cannot maintain security, there are options to adjust the subsidy or block size to attract more or fewer miners. Deflation in Bitcoin is not as straightforward as in gold, and a drop in network security could have complex repercussions. The difficulty-security relationship becomes less predictable over time, making it challenging to program code that detects violations of security targets. One proposal suggests periodically adjusting the subsidy up or down through a soft or hard fork, using an algorithm that calculates the average difficulty of the last 100 retargets every 210,000 blocks and compares it with the maximum of all previous values. This system waits for the recovery of network security in the case of a destructive halving and cannot be manipulated.
Updated on: 2023-06-16T03:39:57.814071+00:00