Replying to Avatar Bryan

This is part of the problem. If you don’t run a mining node, it IS for others to decide. Transactions don’t just appear in a block, a miner, not a hasher, decides which transactions they use to construct their block. There are currently over 200,000 transactions in the mempool.com mempool and FOUR nodes (over simplification, I suppose, but essentially accurate) WILL decide which ~2500 of those + 200,000 to add.

Assuming they will always simply add the highest tx with the highest fee is an assumption that has already been proving wrong by Luxor.
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Stef⚡️🌍 2y ago

Sure but the case you describe is incentivized by profit maximization right? That’s how it should work imo…

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Bryan 2y ago

There are a few issues with assuming “profit maximization” will drive block construction:

1) This has been proven to not be the case on many occasions in the past, see Luxor (4 MB block) or miners hashing at a loss for ideological reasons.

2) The reward is paid in bitcoin. Thinking on a longer time horizon than the very next block reward, if the network continues to centralize (4 nodes are responsible for over 75% of all blocks), the value of bitcoin will trend to zero as the network loses its censorship resistance. In this case, to maximize profit in the long term, we need censorship resistance - which will ensure “there is no top” to the bitcoin price.

*investor in ocean

*my bias is bitcoin