Post
Topic
Board Bitcoin Discussion
The Extreme Flaws Of Bitcoin
by
RealBitcoin
on 29/11/2016, 14:04:57 UTC
Upon my analysis and experience in the bitcoin ecosystem, I have discovered the flaws of Bitcoin, and I would like to hear your opinions about it:


1) Nodes don't get rewards from Mining

This is the biggest flaw that I can imagine. It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU. However the SHA mining alhorithm is not ASIC resistant and when ASICs became widespread, mining was centralized. This is not particularly bad because mining will either way get more efficient.

What is bad is that the nodes are not incentivized, and as mining is centralized. So that only the miners will be nodes in the future and hardly anyone will run a full node. Now because of this we cannot hardfork because the node count will shrink more and more. This really fucked up the entire bitcoin system, how can such fatal flaw not be obvious to satoshi?

2) Bitcoin mining is not ASIC resistant

As explained above, because of this mining gets centralized very fast. It will either centralize, but this way its too fast, and it's now in 1 political zone, which threatens bitcoin's existence.




The real problem is if we did as you suggest then users would run their node only for transactions
and as soon as it is broadcasted and within a block, they would just shut down that node.

The real discussion by the OP is about having 24/7 full nodes that help distribute the security and
risk through global decentralization which is encouraged by directly incentivizing the transaction node
users. Miners are doing their jobs 24/7 and not intermittently. Nodes should be doing their jobs 24/7
as well, like guards on distant mountains keeping watch of their territory.

Average joe users do not need to nor should run full nodes, it is beyond their capabilities, but
full nodes should be incentivized in some way to encourage new capable people into the full
node field, so we can get the Bitcoin node network from 5,000 to around 50,000+.


An increase in legitimate 24/7 full nodes distributed worldwide is the goal.





My Solution:
https://bitcointalk.org/index.php?topic=1730728.0