Post
Topic
Board Development & Technical Discussion
Re: Block Size Scalability Issues
by
Samarkand
on 30/08/2018, 11:43:43 UTC
...
Unfortunately it's impossible with current PoW algorithm/consensus method since people who have most efficient ASIC with cheapest electricity always win and in PoW, the winner takes all.
...

This may be true in theory, but in practice most miners are part of a mining
pool. Therefore they participate in the block reward every time that someone
from their pool "gets lucky" and manages to claim the block reward.

In the long-run this smoothes out the mining income and enables mining
on a more industrial scale. Of course there is still the possibility of mining
less than your expected share for a long time, but still taking part in a mining
pool reduces the variance inherent to a system that was designed as a
winner takes all system.

I wonder how Bitcoin would have turned out if we had never seen the emergence
of mining pools. The hashrate would probably be lower, because higher variance
would have made long-term planning and therefore industrial mining much more
difficult.