Author: Jakub Trnka 2018-07-13 00:27:31
Published on: 2018-07-13T00:27:31+00:00
Jakub Trnka suggests that overlaying scarcity and value on top of the bitcoin blockchain could motivate people to transact more frequently. By creating an equilibrium between transaction fees and mining new coins, this would effectively create a congestion on the bitcoin network, encouraging people to borrow scarcity from bitcoin in some sidechain. PJ Fitzpatrick had previously proposed a method to derive digital scarcity from bitcoin transactions by creating coins from transactions if their hash is among the closest n to the non-zero portion of the block hash. Only a single coin can be created per transaction, regardless of its size, and n coins are created per block. This creates a scarce initial coin supply and addresses which could also be determined by the existing blockchain. There are several variations of this approach, such as creating computation puzzles from the previous block.
Updated on: 2023-06-13T03:58:33.024328+00:00