Author: Henning Kopp 2016-03-04 08:41:02
Published on: 2016-03-04T08:41:02+00:00
Bitcoin developers are discussing the upcoming subsidy halving this July and the potential for a significant drop in mining rate, which could lead to longer block intervals and the block size limit being hit sooner than expected. To address this, they propose a hardfork to the difficulty adjustment algorithm so it can adapt quicker to such a drop in mining rate. This proposal is not considered controversial, but there may be concerns about tinkering with Bitcoin's "economic contract." To address this, some suggest adjusting the economic parameter instead of the difficulty targeting mechanism. Regardless, they believe demonstrating a good process for making decisions and separating meaningful underlying principles from implementation details is key to increasing confidence in the system. A paper by Courtois regarding the effects of the mining reward halving is also referenced.
Updated on: 2023-06-11T04:17:53.276678+00:00