Author: Benjamin 2015-06-27 17:46:55
Published on: 2015-06-27T17:46:55+00:00
The email conversation discusses the issue of quality of service on a fixed capacity system where access is mediated by supply and demand transaction fees. The writer argues that there is no ensured quality of service since users don't know what they will get even if they bid higher, and they have no way of knowing what others are bidding. The lack of auctions with increasing increments prevents the establishment of a feedback loop to settle demand and supply. The supply side does not adapt, which contributes to the capacity problem. In response, Peter Todd points out that Bitcoin already works based on supply and demand, and users can adapt fees to get different quality of service depending on current capacity. He refers the writer to his article on how transaction fees work for more details.
Updated on: 2023-06-10T01:20:25.830823+00:00