delvingbitcoin

An Onchain Implementation Of Mining Feerate Futures

An Onchain Implementation Of Mining Feerate Futures

Original Postby ajtowns

Posted on: February 23, 2024 03:58 UTC

The communication highlights a correction and thanks for it, addressing an earlier misunderstanding related to mathematical computations linked with cryptocurrency mining behaviors.

Specifically, the sender acknowledges having verified the calculations provided in the linked document and found them to be accurate. This rectification is appreciated as it helps clear up confusion surrounding the initial assessment of how large miners might manipulate transaction delays for profit maximization.

In an exploratory effort prior to this clarification, the sender engaged in simulating the scenario using Python to derive a less speculative understanding of the dynamics at play. This endeavor underscores the complexity and non-obvious nature of the strategies large miners could adopt, suggesting that intuitive conclusions may not always hold true when scrutinized under rigorous analysis.

The essence of the discussion revolves around the notion that large miners possess the capability to influence their profits by intentionally delaying transactions, a tactic that ostensibly appears detrimental from a smaller miner's perspective. However, the counterpoint introduced, albeit with a hint of skepticism, posits that such actions by large miners could inadvertently result in equal or even greater profit opportunities for the smaller miners. This aspect introduces a nuanced view of the mining ecosystem, where the interplay between miner sizes and their strategies yields unexpected outcomes. Despite the theoretical possibility of a balanced advantage, the sender expresses doubt about the practical realization of this equilibrium, suggesting that what might seem theoretically advantageous could diverge significantly from actual outcomes within the mining community.