Does Bitcoin require or have an honest majority or a rational one? (re rbf)

Summary:

The concept of an "honest majority" in blockchain design is often based on the assumption that users will follow arbitrary rules, regardless of their own self-interest. However, this assumption can be problematic, as users may choose to violate these rules if it benefits them personally. For example, a proof of stake blockchain may require users to delete their signing keys after a certain period of time, but there is no incentive for them to do so if keeping their keys gives them more power and options. It is not reasonable to build a distributed pseudonymous system based on arbitrary rules and then simply define it as secure by fiat. Users need an incentive to follow the rules of the system or it won't work. The rules should form a Nash Equilibrium, and violating this equilibrium can be detrimental to the system's security. Bitcoin's design relies on the miner's self-interest to build upon the longest (most work) chain, making it rational for them to follow the rules of the system. Satoshi Nakamoto recognized the importance of incentivizing users to follow the rules of the system and did not define "honesty" in a specific way. However, the assumption of an honest majority is necessary for Bitcoin to function properly. The controversy surrounding Replace-by-Fee (RBF) is related to efforts to make honest behavior also rational behavior, which would weaken assumptions about the system's security. To ensure the network's safety, it might be useful to document Bitcoin's assumptions and pathways to weaken them without compromising user expectations. It is important not to weaken assumptions that only apply to one subsystem of Bitcoin if they destabilize another system. The demand for transactions affects the fee market's longer-term viability, so decreasing transaction utility for end users can be detrimental to the system's success.In conclusion, the concept of an "honest majority" is important for blockchain design, but it cannot be assumed that users will follow arbitrary rules without incentive. Bitcoin's design relies on the miner's self-interest to follow the rules of the system, and it is important to document and strengthen assumptions without compromising user expectations.

Updated on: 2023-06-16T01:54:18.730675+00:00