It's a game like feeding the birds to see which bird will be able to grab the bread first.Īnybody can throw money and watch which robot will catch it. Not only that, but to maintain the security of the ledger, any increase in Bitcoin valuation must result in a proportional increase in proof of work expenditure across the entire network. So, there must always, always be profit in running proof of work calculations. That lowered difficulty then results in a lower cost to attack Bitcoin. If the sum of the block reward and the transaction fees decreases, then that would result in fewer groups willing to perform proof of work calculations, and would be followed by a decrease in the proof of work difficulty in order to maintain ~1 block every ten minutes. In the future, when proof of work is performed, transaction fees will need to increase in order to provide a similar incentive. Currently, when proof of work is performed, it is funded in large part by increasing a ledger value without a corresponding decrease elsewhere (aka "minting"). In order to remain secure, the cost to attack Bitcoin must be proportional to the value represented by Bitcoin. The supply limit is irrelevant in this case.
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