Post
Topic
Board Development & Technical Discussion
Re: Elastic block cap with rollover penalties
by
DumbFruit
on 04/06/2015, 13:51:27 UTC
I think it's interesting to switch the conversation over to a soft-failure rather than trying to find the appropriate answer to the block size for now.

That said, a problem with any kind of rollover fee is that it assumes that moving fees to future blocks is also moving fees to different nodes.

Put differently; centralizing nodes is a way of avoiding the penalties you're trying to introduce with this protocol.

Put differently again; Paying fees over consecutive blocks gives a competitive advantage to larger mining entities when making larger blocks.

Put triply differently; A node that can reliably get another block within X blocks is less penalized than a node that cannot, where "X" is the number of blocks that the rollover fee is given.

So if the goal is to avoid centralization, then the protocol does the opposite of the intention. If the goal is to make Bitcoin fail-safe, I'm not convinced that Bitcoin isn't already. When blocks fill, we will see higher transaction fees, potentially lengthier times before a transaction is included in a block, and as a result more 3rd party transactions.

Rereading Mike Hearns article1, changing bitcoin to include highest fee transactions into the mempool should result in the behavior I described. An end user might see delays before their transaction is included in a block, but I wouldn't call that a "crash landing", considering that the sorts of transactions that would be done at these rates are not as concerned about the speed of confirmation.

TLDR: How does a fee over "X" blocks not incentivize a centralization of nodes?

1https://medium.com/@octskyward/crash-landing-f5cc19908e32