Author: Benjamin 2015-06-27 17:26:00
Published on: 2015-06-27T17:26:00+00:00
The context discusses a fixed capacity system where access is based on supply and demand transaction fees. However, the author argues that this approach would not work as it would allow users to adapt fees and receive different qualities of service depending on current capacity. The author suggests that during peak load times, fees would be higher while users delay transactions to smooth out demand. In a separate email thread, Peter Todd outlines two main things that need to be shown before agreeing to increase the block size to 8MB. Firstly, small, anonymous miners must remain profitable regardless of their location or if they are under attack. Secondly, there must be a medium to long term plan to pay for hashing power. Without scarcity of blockchain space, transaction fees could fall to the marginal cost of including a transaction, leaving nothing to pay for proof-of-work security. One possible solution suggested by Todd, although politically non-viable, would be to change the inflation schedule so that the currency is inflated indefinitely.
Updated on: 2023-06-10T01:21:15.875150+00:00