Nostr Web Client

I'm confused. I thought all nodes validate transactions.

Yes, this is correct, but the block of transactions that every node verifies was proposed and added to the chain by a miner running a mining node.

And currently, over 75% of the blocks being added to the chain (proposed) are constructed by 4 nodes (pools, companies).

The miner will choose ~ 2500 out of the current > 200,000 transactions in the mempool to construct a valid block. The other 198,000 remain in the mempool.

There is the thought that miners will simply construct a block which generates the highest fees, but this has already been proven wrong.

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Discussion

Drew F 2y ago

Thanks for the detailed explanation. Can't there be a decentralized undiscrinatory and purely fee based mining pool? Is the issue with such a creations viability, or that one does not currently exist?

zhenya 2y ago

That is the goal friend. Miners benefit from pooling with the largest pools. Pools that get large get attention of sovereigns. It’s cheaper for pools to comply than face down agencies in court. The cycle continues.

Further I suspect with etf that the inducements and incentives for “compliant” pools will grow.

HTMLHODL 2y ago

I’d argue that a pool isn’t really a single entity… hash power will move if it disagrees…

Bryan 2y ago

Then why isn’t it moving? 4 pools control nearly everything.