Received-SPF: pass (sog-mx-1.v43.ch3.sourceforge.com: domain of petertodd.org
	designates 62.13.148.93 as permitted sender)
	client-ip=62.13.148.93; envelope-from=pete@petertodd.org;
	helo=outmail148093.authsmtp.net; 
Date: Fri, 12 Jun 2015 14:01:13 -0400
From: Peter Todd <pete@petertodd.org>
To: Pieter Wuille <pieter.wuille@gmail.com>
Message-ID: <20150612180028.GA19199@muck>
References: <CAPg+sBi5fYHGLv4wtWbWE7jov8CX=q9UX=vhxDVepG6JfX30+g@mail.gmail.com>
MIME-Version: 1.0
Content-Type: multipart/signed; micalg=pgp-sha256;
	protocol="application/pgp-signature"; boundary="xgyAXRrhYN0wYx8y"
Content-Disposition: inline
In-Reply-To: <CAPg+sBi5fYHGLv4wtWbWE7jov8CX=q9UX=vhxDVepG6JfX30+g@mail.gmail.com>
Cc: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] Mining centralization pressure from
 non-uniform propagation speed
Precedence: list


--xgyAXRrhYN0wYx8y
Content-Type: text/plain; charset=us-ascii
Content-Disposition: inline
Content-Transfer-Encoding: quoted-printable

On Fri, Jun 12, 2015 at 06:51:02PM +0200, Pieter Wuille wrote:
> The configuration used in the code right now simulates two groups of mine=
rs
> (one 80%=3D25%+25%+30%, one 20%=3D5%+5%+5%+5%), which are well-connected
> internally, but are only connected to each other through a slow 2 Mbit/s
> link.
>=20
> Here are some results.
>=20
> This shows how the group of smaller miners loses around 8% of their
> relative income (if they create larger blocks, their loss percentage goes
> up slightly further):

To be clear, when you say 8% of their income, you mean revenue, not
profit?

Actual profit margins of something like 5%-10% are likely, so that's an
enormous hit that could make their mining operation completely
non-viable.

--=20
'peter'[:-1]@petertodd.org
0000000000000000127ab1d576dc851f374424f1269c4700ccaba2c42d97e778

--xgyAXRrhYN0wYx8y
Content-Type: application/pgp-signature; name="signature.asc"
Content-Description: Digital signature

-----BEGIN PGP SIGNATURE-----
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==
=c+oY
-----END PGP SIGNATURE-----

--xgyAXRrhYN0wYx8y--