Author: Eric Lombrozo 2015-07-24 01:55:25
Published on: 2015-07-24T01:55:25+00:00
The use of smart contracts in the cryptospace is a significant development that allows for trustless negotiation and encapsulation of complex tasks by third-party entities. This incentivizes competition and transparency, leading to optimization via human ingenuity. The implementation of quality-of-service guarantees through third-party bidding allows for shifting complexity and risk from wallets with limited computational resources to services with an abundance of them. Negotiating directly with miners via smart contracts is difficult at best due to the random, poisson process of mining and block time variance. Jean-Paul Kogelman suggests using implicit QoS, which is simpler to implement, requires fewer parties, and is closer to Bitcoin's original idea as a peer-to-peer digital cash system. Miners set their tiers for fees and users select the level of service they want, ignoring the block size. Miners will adapt their tiers based on how many transactions end up in them. If a tier is popular, they can increase its cost, but if no one chooses a particular level of service, the miner has priced themselves out of the market.
Updated on: 2023-06-10T03:20:17.454772+00:00