Author: Daniele Pinna 2015-09-01 08:52:46
Published on: 2015-09-01T08:52:46+00:00
In an email exchange among members of the bitcoin-dev mailing list, Daniele Pinna, Ph.D, clarified his previous assertions regarding the revenue per unit hash advantage for miners. While his paper did show that the advantage decreased with the block reward, he pointed out that this decrease does not necessarily imply that the real revenue per unit hash advantage also decreases. The origin of this effect seems to stem from the orphaning factor used which doesn't preserve the full network revenue per unit block. According to Pinna, the miner profit equations are merely lower bounds to the miner's true expected profit. He suspects that the orphaning factor used, independently of the specific form of the block relay time, is incorrect or incomplete. Peter Todd, another member of the mailing list, agreed with Pinna's clarification. In a separate email, Todd shared a link to his previous math proof which demonstrated that larger miners earn more money per unit hashing power.
Updated on: 2023-06-10T21:39:22.757323+00:00