Author: Michael Gronager 2013-11-15 11:47:46
Published on: 2013-11-15T11:47:46+00:00
The email thread discusses the propagation time and fork rate of Bitcoin mining. The calculations show that alpha, which is the bandwidth, is very low at 24kB/second. However, this is due to limited network bandwidth, validation and verification time of blocks, and latency in sending. The problem could be resolved if pools used high-bandwidth nodes with restricted numbers of peers. This would optimize profits as mining pulls in $1.8 million per day. The loss of $16k from not optimizing profits is born disproportionately by smaller miners. The real number for the bandwidth estimate is even worse than 24kB/second. The connection between propagation time and fork rate cannot be denied, and the bandwidth can be deducted from that alone. The relevant comparison is between pool operator earnings, which are around 1% of the $1.8m per day, so it is $18k vs $16k. It is suggested that P2pool should be resurrected to solve the issue.
Updated on: 2023-06-07T20:08:56.984766+00:00