Author: ZmnSCPxj 2020-03-24 07:42:46
Published on: 2020-03-24T07:42:46+00:00
In a recent email exchange, a user asked if there is a long-term plan in place to ensure the security of the Bitcoin network if the block reward drops too low. The user pointed out that miners currently make profits from both block rewards and transaction fees and that once the block reward drops to zero, the network's security could be compromised if transaction fees are not enough to deter attacks. The user suggested the idea of an adjustable block reward, where Bitcoin holders could vote to decide the appropriate block reward that would balance the need for security and the desire to keep the reward low. However, ZmnSCPxj, an expert on the Bitcoin protocol, noted that this already happens implicitly through the transaction fee. The difference between the sum of all inputs and the sum of all outputs is essentially a "field" for Bitcoin holders to vote on how much security they need, making it costly for them to do so. This mechanism is also the long-term plan for lowered block rewards in the future and is currently the best-known solution to tackle this problem.
Updated on: 2023-06-14T00:10:26.826079+00:00