Author: Jorge Timón 2015-09-03 18:23:45
Published on: 2015-09-03T18:23:45+00:00
Jeff Garzik is arguing that the pay-with-diff system proposed by BtcDrak for increasing nBits to vote for a block size increase would result in unpredictability, chaos and low planning ability as businesses would find it difficult to predict a stable block size/fee environment. The binary conclusion of "not get used" or "volatility" could be damaging to markets and systems. He suggests that paying with difficulty requires some amount of collusion, which could result in miners losing an entire block's income to another miner who does not care about changing the block size. Gregory Maxwell disagrees with Jeff Garzik and points out that the scheme proposes a blocksize that increases fast with difficulty over a narrow window. This would slightly reduce the odds of producing a block but would make the block more profitable. There is a trade-off between orphaning risk and centralization advantage, which can be traded off for larger blocks. Moreover, mining is not a race and increasing difficulty does not put miners at an expected return disadvantage compared to other miners as long as the income increases proportionally. Pay-for-size schemes have been successfully used in some altcoins without any negative effects. Overall, Gregory believes that Jeff's arguments don't seem to apply to his original proposal where the size is only increased for that block and not permanently.
Updated on: 2023-06-10T21:58:49.631095+00:00