How important is network latency for bitcoin?

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Lets say, I have a proper industrial grade mining setup. I have two accounts. I transfer some bitcoins back and forth between two accounts. Both accounts are using the same machine or different machines in the same room. Since the network latency is negligible, it is going to win the race every time (provided the hardware is competitive enough).

This way I can game the system and get a lot of commission for maintaining the ledger for mostly myself.

I do not suppose I am the first guy to come up with this idea. Is there a technical name for it? If is this not feasible, why so?

Souradeep Nanda

Posted 2017-04-22T06:28:47.720

Reputation: 111

1What race are you talking about? Creating a block? Trying a double spend? Something else? – Pieter Wuille – 2017-04-22T16:25:03.757

The bonus you get from maintaining the ledger. – Souradeep Nanda – 2017-04-24T10:40:08.173

Answers

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I watched this beautiful video from computerphile which cleared things up a bit. It can take an hour to compute and update the blockchain, no amount of network latency can compete with that.

Souradeep Nanda

Posted 2017-04-22T06:28:47.720

Reputation: 111

Asked: 2017-04-22T06:28:47.720

Viewed: 594 times

Active: 2017-04-26T13:40:47.423