[Bitcoin-ml] Transaction mining priorities.

Tier Nolan tier.nolan at gmail.com
Wed Sep 20 12:25:34 UTC 2017


On Wed, Sep 20, 2017 at 10:23 AM, Tom Zander via bitcoin-ml <
bitcoin-ml at lists.linuxfoundation.org> wrote:

> You make it out like miners are short term opportunists, even though
> various
> people (you included) provided evidence to support the contrary. Is it so
> hard to grasp that a big investor in mining equipment actually looks beyond
> next month?
>

I think a reasonable viewpoint is that miners try to maximize their revenue
but are willing to take a small hit in order to promote the long term value
of the coin.

Miners enforcing the first seen rule is an example of this.  They could
have made more by using replace by fee, but they were willing to accept a
tiny loss in order to help the coin.

The fact that miners have invested in equipment that takes months to payoff
means that at minimum they don't want the coin's value to drop within that
time frame.

You said more than once they only focus on very short term incentives, like
> a common child. This implies that miners are ignorant about economics and
> don’t know how to maximise profits by producing growth and stability.
>

There is likely a limit to their (enlightened) altruism.  There is herd
behavior to consider.  If one pool switches to a more profitable rule, then
the others have to too.

Miners who previous didn't use replace by fee eventually decided to use the
rule.

The security assumption for Bitcoin is that if a majority of the miners
follow the rules, then it is in the interests of all miners to follow the
rules.  Adding an altruism requirement adds another assumption.
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