Author: vjudeu at gazeta.pl 2022-07-08 04:59:30
Published on: 2022-07-08T04:59:30+00:00
The discussion among Bitcoin developers centers on two main topics. One is the relationship between block size and fees, and the other is the security of the network. It is stated that lowering the block size could help prevent double-spending attacks by increasing fee pressure and double-spend security while reducing the burden on node operators. However, it is also mentioned that the difficulty adjustment function merely adjusts for changes in the amount of observable, non-51%-attacking, hashing power. Against a 51% attacker or censor, the difficulty adjustment does nothing.It is argued that economic forces (people) provide security, not technology. The present amount of security is about 1.7% of the total coin supply/year, and Bitcoin seems to be working fine. The current level of demand increases overall hash rate, despite block reward and profit remaining constant. This makes the cost of attempting to orphan a block higher, therefore lowering the depth/time requirement implied to secure a given tx amount. The discussion also explores how inflation can be tested using an evil channel with a time-based fee where coins are lost over time. If anyone wants to test inflation, it is possible right now. It is argued that if all coins are mined, then they can move only if users will move them. So if you want to change that, it is all about encouraging them to put their coins in some evil Lightning channel when they will lose their coins over time. That's how inflation works. The subsidy of 50btc would imply somewhere in the neighborhood of $200 per tx in fees today, and as $680. As that falls, fees will continue to keep miners at the same profit level. If demand does not rise to compensate (as it always has), then the hash rate will fall. Propping up hash rate with subsidy will not be “inflationary” since Bitcoin is a market money. Like gold, it is produced at market cost. Yet it will prevent Bitcoin from achieving any meaningful level of censorship resistance.
Updated on: 2023-06-15T21:23:11.782718+00:00