Author: ZmnSCPxj 2020-03-28 02:12:37
Published on: 2020-03-28T02:12:37+00:00
The email thread discusses a phenomenon that can occur in capitalism, where individuals act in their self-interest and eventually lead to an undesirable outcome for everyone involved. The example used is that of fish farms in a lake, where each farm produces waste that lowers productivity in the lake. Capitalism leads to the invention of a filtering system that costs money to operate but allows the fish farms to continue making profit. However, if one farmer stops using the filter, others follow suit, leading to a decrease in productivity and profits for everyone. The writer uses this example to question whether a similar dynamic would occur in Bitcoin with the block weight limit and transaction fees. The response explains that there will always be a need for some block weight limit to ensure miners get paid, and offchain mechanisms only amortize onchain fees to multiple logical transactions.
Updated on: 2023-06-14T00:09:23.901665+00:00