Author: Alex Mizrahi 2015-05-08 15:57:27
Published on: 2015-05-08T15:57:27+00:00
Adaptive schedules for block size limits in blockchain technology can be appealing due to the ability to adapt to actual use, but they also open up the possibility of manipulation. For instance, one mining company could try to bankrupt other companies by accepting transactions with extremely low fees, which would make mining non-profitable for their competitors. This tactic could result in losses for the manipulating company, but they may be able to survive if they have access to financial resources, such as being backed by a bank. Once competitors close down their mining operations, the manipulating company could drive fees upwards. To prevent room for manipulation, it is better to have a block size hard limit that only depends on block height with a soft limit enforced by the majority of miners. It is difficult to analyze and control the potential for manipulation with adaptive schedules that factor in parameters beyond block height.
Updated on: 2023-06-09T20:04:47.489041+00:00