Author: Scott Roberts 2017-10-11 14:50:20
Published on: 2017-10-11T14:50:20+00:00
The thread discusses the feasibility of a hard fork in Bitcoin. The author believes that a hard fork attempt to fix issues such as long transaction delays will not work unless the difficulty is fixed to let price guide hash power instead of vice versa. The author argues that current difficulty algorithms for altcoins are necessary when there is a higher hash rate coin with the same POW, and that Core will have to fork to a faster responding difficulty algorithm if it finds itself with a lower hashrate. Another participant in the thread suggests that changing the difficulty adjustment algorithm does not solve the underlying issue of hashpower not being aligned with users' interests. However, the author argues that a faster responding difficulty is a pre-requisite in minority hashrate coins for letting price dictate hashpower instead of vice versa, and that this is the experience of alts. The thread also touches on the power dynamic between hodlers and miners in hardfork situations. The author argues that miners will prefer the coin with higher transaction fees which will erode hodler confidence via longer delays, and that large blocks reduce network security while giving the higher total transaction fees to miners even as it can reduce fees per coin for users. The discussion also compares BCH's difficulty algorithm to Bitcoin's, with the author arguing that BCH has survived this long because they did not use the Bitcoin difficulty algorithm. The author proposes a shorter difficulty algorithm averaging window to enable more, faster oscillations to enable better price discovery before a winner is chosen. The author suggests a reward function to reduce oscillations and assist better price discovery.
Updated on: 2023-05-20T04:09:35.222028+00:00