Author: CJP 2015-10-27 21:34:12
Published on: 2015-10-27T21:34:12+00:00
The article discusses the possibility of miners not being an effective cartel and thus unable to force fees to rise to maximize revenue. The author suggests that this scenario could occur if mining is decentralized and individual miners make the blocks instead of pool operators. The author then explores how calculations would work out if miners were non-organized and acted to maximize their own profits, even if it comes at a disproportionate cost for other miners. It is suggested that a free market with many independent actors would lead to lower prices than a market operated by a monopoly/cartel. However, there are natural limits to including transactions in blocks due to the costs involved. The author estimates that miners will continue to include transactions until it takes almost ten minutes to download + verify a block. This conclusion is dependent on the distribution of fees people are willing to pay. The article also notes that different miners take different times to download+verify blocks, which was not taken into account in the estimations.
Updated on: 2023-05-23T21:27:45.195386+00:00