.@Truthcoin drops a stunner on Bitcoin's long term security budget. Outstanding as usual
http://www.truthcoin.info/blog/security-budget/ …
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It's prudent for businesses & users to take part in mining defensively to participate in security. Even post subsidy, I am not so worried because even less secure money has worked because people need it to, and there is market incentive to find ways to fund
#Bitcoin security.
This smacks of asking for volunteers to mine despite having unprofitable rigs. How to make it incentive compatible?
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If your businesses doing millions of dollars a day you have plenty of incentive to fire up rigs.
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Free rider problem. More profitable to let somebody else pay for security, so nobody wants to.
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If no one does they all go out of business. Of course no one knows for sure what will happen, we'll be going back to the experimental stage at that point.
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Recipients of large value txs can: 1. try to mine the tx themselves by quickly leasing extra hashpower just for this block. may be lots of subtle problems with this. 2. wait more blocks
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The second point is enough imo, security is the product of hashpower and the passage of time.
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He's saying they have an incentive, just not the mining reward itself. Someone with a million BTC for example, has a vested interest to make sure the network stays secure.
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You might not need all that much incremental incentive at the margins. Virtue signalling to the community and insurance against the long tail of risks would both incentivize some amount of nominally 'altruistic' mining. Remains to be seen if that's enough.
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Add random block reward every xx blocks. It could be like winning the lottery. Running miner with any amount of hash means having lotto ticket.
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I envision commodity mining hardware so ubiquitous by the time the block reward is gone we have not only sustained or increased hashrate, but we have done away with the centralization caused primarily by ASICs. A large legit botnet will be mining. Centralization is temporary! No?
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