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I'm trying to understand what can happen if
- A block consists entirely of 3rd party (xCoin) data like Namecoin
- There are no Tx fees to collect since they are on alternate chains.
- Assume that the Block reward is quite low (0.25 BTC).
How will mining be profitable?
If the 3rd party data must subsidize mining, what would that subsidy look like within a block?
Exchange rate would be 1000 USD per BTC, so 250 USD per block is not bad.. :) – vi.su. – 2013-03-06T16:04:18.490
3@vi.su [citation needed] – Nick ODell – 2013-03-06T16:24:54.103
@makerofthings "A block consists entirely of 3rd party (xCoin) data like Namecoin" NameCoin merged mining adds 32 bytes - which is about 1/5 of one transaction. – Nick ODell – 2013-03-06T16:29:10.187
@NickODell Just as Namecoin was invented as an alt chain, what I create one, and then some state does as well. Add a few others and the quantity of bytes increases.... – goodguys_activate – 2013-03-06T16:45:17.017
If a transaction (e.g., xCoin, your example) isn't "paying the freight" it will be cast aside (e.g., take longer to confirm.) If system-wide fees are lower, mining capacity drops to match. That's not a problem unless 51% is a real concern, and that's not a real concern now. – Stephen Gornick – 2013-03-06T18:07:32.473
Bitcoin reward would be 0.25 BTC in 30 years. 1000 USD exchange rate per BTC is just speculation.. – vi.su. – 2013-03-07T01:19:47.253