1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
|
Return-Path: <peter_r@gmx.com>
Received: from smtp1.linuxfoundation.org (smtp1.linux-foundation.org
[172.17.192.35])
by mail.linuxfoundation.org (Postfix) with ESMTPS id 4970A898
for <bitcoin-dev@lists.linuxfoundation.org>;
Sun, 30 Aug 2015 20:09:02 +0000 (UTC)
X-Greylist: domain auto-whitelisted by SQLgrey-1.7.6
Received: from mout.gmx.net (mout.gmx.net [212.227.15.18])
by smtp1.linuxfoundation.org (Postfix) with ESMTPS id B5742194
for <bitcoin-dev@lists.linuxfoundation.org>;
Sun, 30 Aug 2015 20:09:01 +0000 (UTC)
Received: from [192.168.50.29] ([69.50.179.106]) by mail.gmx.com (mrgmx001)
with ESMTPSA (Nemesis) id 0LbMmA-1Ypu8x1mKQ-00kugV;
Sun, 30 Aug 2015 22:08:58 +0200
Content-Type: multipart/alternative;
boundary="Apple-Mail=_A626710B-3D53-4A85-A348-EDDCB866C4AA"
Mime-Version: 1.0 (Mac OS X Mail 6.6 \(1510\))
From: Peter R <peter_r@gmx.com>
In-Reply-To: <CAEgR2PGn_SER18sMuKPJJz5RT=1K=346eCmph5FJQhhoLcV1zw@mail.gmail.com>
Date: Sun, 30 Aug 2015 13:08:58 -0700
Message-Id: <8A71E9FB-1901-4044-B2E0-04DEFE58C045@gmx.com>
References: <CABsx9T1E1s=4h-SxLTOAXK4GniZrUekcEb6zDdTDFG+h7X98MA@mail.gmail.com>
<1438640036.2828.0.camel@auspira.com>
<CABsx9T2A-Mz9z=TTifbL2_sKCDvy8coRpNse+0vff6EbXbp8cg@mail.gmail.com>
<BF420F3B-044C-46F6-8880-FEEB9A3DC748@gmx.com>
<CAAS2fgTzeFnmnr2ScZvf1pDUtF+M3HhF9xo0yhjVPObpqhgz0A@mail.gmail.com>
<6ED57388-6EC3-4515-BF3F-E753301537AB@gmx.com>
<CAAS2fgRoFna4i-d=hpmz-CpV35VQ=J1aEoTTT6B1oD4f15C1KA@mail.gmail.com>
<C8B38FEC-0EF2-483F-9E53-43AB937455A0@gmx.com>
<CAAS2fgQjXNTi9Y_YwLg2dR8baYZhvmEjw43ictt749zR2AOEWw@mail.gmail.com>
<6FED5604-4A6F-4CE1-B42E-36626375D557@gmx.com>
<CAAS2fgQ7hRRvRtD8igcZ2aWBmnqre6iM27peCFGxgC8ODb9jgw@mail.gmail.com>
<6BA86443-7534-4AAA-92BC-EC9B1603DE5F@gmx.com>
<CAAS2fgTTZKD9LQHpMmEH0OU=T8Ta7cCaavWzhM1yQ68-MAT8UQ@mail.gmail.com>
<27B16AB4-0DAD-4665-BF08-7A0C0A70D8D8@gmx.com>
<CAAS2fgRm_CSmWgr7CGmBUD0nX+V0fJ8N4TQN01Vchgip9-s6uQ@mail.gmail.com>
<CAAS2fgT+DP+DaoCMG276uF4=Yoi-w40YyNP-RDRG7NQgOmtpGw@mail.gmail.com>
<CAEgR2PGn_SER18sMuKPJJz5RT=1K=346eCm
ph5FJQhhoLcV1zw@mail.gmail.com>
To: Daniele Pinna <daniele.pinna@gmail.com>
X-Mailer: Apple Mail (2.1510)
X-Provags-ID: V03:K0:/ZabFh+n39582WQLCDbu7wty47zHLtVnVi94ZYejCKkA1Af4xIB
2srNeFdmGqEa7MuDqJuyTrn4Z7j6NCoGOx6CVU3bgu1kSRExzuEpEf1lS6nzipeyEVCQlhl
B2Wo0BzjrkyYerpwHyXqyT3aNLvEmQEaT3jXza/WfVkzAHP2ba725MywWSW704+3vSGYBNG
wBuKqPKQA9QpC+ZV8bAcw==
X-UI-Out-Filterresults: notjunk:1;V01:K0:GyaF/VlvWj8=:yDzYf1TYampC1icUXow7AK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X-Spam-Status: No, score=-2.6 required=5.0 tests=BAYES_00,FREEMAIL_FROM,
HTML_MESSAGE,RCVD_IN_DNSWL_LOW autolearn=ham version=3.3.1
X-Spam-Checker-Version: SpamAssassin 3.3.1 (2010-03-16) on
smtp1.linux-foundation.org
Cc: bitcoin-dev@lists.linuxfoundation.org
Subject: Re: [bitcoin-dev] "A Transaction Fee Market Exists Without a Block
Size Limit"--new research paper suggests
X-BeenThere: bitcoin-dev@lists.linuxfoundation.org
X-Mailman-Version: 2.1.12
Precedence: list
List-Id: Bitcoin Development Discussion <bitcoin-dev.lists.linuxfoundation.org>
List-Unsubscribe: <https://lists.linuxfoundation.org/mailman/options/bitcoin-dev>,
<mailto:bitcoin-dev-request@lists.linuxfoundation.org?subject=unsubscribe>
List-Archive: <http://lists.linuxfoundation.org/pipermail/bitcoin-dev/>
List-Post: <mailto:bitcoin-dev@lists.linuxfoundation.org>
List-Help: <mailto:bitcoin-dev-request@lists.linuxfoundation.org?subject=help>
List-Subscribe: <https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev>,
<mailto:bitcoin-dev-request@lists.linuxfoundation.org?subject=subscribe>
X-List-Received-Date: Sun, 30 Aug 2015 20:09:02 -0000
--Apple-Mail=_A626710B-3D53-4A85-A348-EDDCB866C4AA
Content-Transfer-Encoding: quoted-printable
Content-Type: text/plain;
charset=us-ascii
Hi Daniele,
I don't think there is any contention over the idea that miners that =
control a larger percentage of the hash rate, h / H, have a =
profitability advantage if you hold all the other variables of the =
miner's profit equation constant. I think this is important: it is a =
centralizing factor similar to other economies of scale. =20
However, that is outside the scope of the result that an individual =
miner's profit per block is always maximized at a finite block size Q* =
if Shannon Entropy about each transaction is communicated during the =
block solution announcement. This result is important because it =
explains how a minimum fee density exists and it shows how miners cannot =
create enormous spam blocks for "no cost," for example. =20
Best regards,
Peter
> 2) Whether it's truly possible for a miner's marginal profit per unit =
of hash to decrease with increasing hashrate in some parametric =
regime.This however directly contradicts the assumption that an optimal =
hashrate exists beyond which the revenue per unit of hash v' < v if h' =
> h.=20
> Q.E.D=20
>=20
> This theorem in turn implies the following corollary:
>=20
> COROLLARY: The marginal profit curve is a monotonically increasing of =
miner hashrate.
>=20
> This simple theorem, suggested implicitly by Gmaxwell disproves any =
and all conclusions of my work. Most importantly, centralization =
pressures will always be present.=20
--Apple-Mail=_A626710B-3D53-4A85-A348-EDDCB866C4AA
Content-Transfer-Encoding: quoted-printable
Content-Type: text/html;
charset=us-ascii
<html><head><meta http-equiv=3D"Content-Type" content=3D"text/html =
charset=3Dus-ascii"></head><body style=3D"word-wrap: break-word; =
-webkit-nbsp-mode: space; -webkit-line-break: after-white-space; ">Hi =
Daniele,<div><br></div><div>I don't think there is any contention over =
the idea that miners that control a larger percentage of the hash rate, =
<i>h </i>/ <i>H</i>, have a profitability advantage if you hold all the =
other variables of the miner's profit equation constant. I think =
this is important: it is a centralizing factor similar to other =
economies of scale. </div><div><br></div><div>However, that is =
outside the scope of the result that an individual miner's profit per =
block is always maximized at a finite block size Q* if Shannon Entropy =
about each transaction is communicated during the block solution =
announcement. This result is important because it explains how a =
minimum fee density exists and it shows how miners cannot create =
enormous spam blocks for "no cost," for example. =
</div><div><br></div><div>Best =
regards,</div><div>Peter</div><div><br></div><div><br></div><div><div><blo=
ckquote type=3D"cite"><div class=3D"gmail_extra" style=3D"font-family: =
Helvetica; font-size: medium; font-style: normal; font-variant: normal; =
font-weight: normal; letter-spacing: normal; line-height: normal; =
orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: =
none; white-space: normal; widows: 2; word-spacing: 0px; =
-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><span =
style=3D"font-size: 13px; ">2) Whether it's truly possible for a miner's =
marginal profit per unit of hash to decrease with increasing hashrate in =
some parametric regime.</span>This however directly contradicts the =
assumption that an optimal hashrate exists beyond which the revenue per =
unit of hash <i style=3D"font-size: 12.8000001907349px; =
font-weight: bold; ">v' < v<span =
class=3D"Apple-converted-space"> </span></i><span style=3D"font-size:=
12.8000001907349px; ">if</span><i style=3D"font-size: =
12.8000001907349px; font-weight: bold; "> </i><span =
style=3D"font-size: 12.8000001907349px; "> </span><i =
style=3D"font-size: 12.8000001907349px; "><b>h' > =
h. </b></i></div><div class=3D"gmail_extra" style=3D"font-family: =
Helvetica; font-size: medium; font-style: normal; font-variant: normal; =
font-weight: normal; letter-spacing: normal; line-height: normal; =
orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: =
none; white-space: normal; widows: 2; word-spacing: 0px; =
-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><i =
style=3D"font-size: 12.8000001907349px; =
"><b>Q.E.D </b></i></div><div class=3D"gmail_extra" =
style=3D"font-family: Helvetica; font-size: medium; font-style: normal; =
font-variant: normal; font-weight: normal; letter-spacing: normal; =
line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: =
0px; text-transform: none; white-space: normal; widows: 2; word-spacing: =
0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; =
"><i style=3D"font-size: 12.8000001907349px; "><b><br></b></i></div><div =
class=3D"gmail_extra" style=3D"font-family: Helvetica; font-size: =
medium; font-style: normal; font-variant: normal; font-weight: normal; =
letter-spacing: normal; line-height: normal; orphans: 2; text-align: =
-webkit-auto; text-indent: 0px; text-transform: none; white-space: =
normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; =
-webkit-text-stroke-width: 0px; "><span style=3D"font-size: =
12.8000001907349px; ">This theorem in turn implies the following =
corollary:</span></div><div class=3D"gmail_extra" style=3D"font-family: =
Helvetica; font-size: medium; font-style: normal; font-variant: normal; =
font-weight: normal; letter-spacing: normal; line-height: normal; =
orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: =
none; white-space: normal; widows: 2; word-spacing: 0px; =
-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><i =
style=3D"font-size: 12.8000001907349px; "><b><br></b></i></div><div =
class=3D"gmail_extra" style=3D"font-family: Helvetica; font-size: =
medium; font-style: normal; font-variant: normal; font-weight: normal; =
letter-spacing: normal; line-height: normal; orphans: 2; text-align: =
-webkit-auto; text-indent: 0px; text-transform: none; white-space: =
normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; =
-webkit-text-stroke-width: 0px; "><span style=3D"font-size: =
12.8000001907349px; "><b>COROLLARY: </b></span><span =
style=3D"font-size: 12.8000001907349px; "><b>The marginal profit curve =
is a monotonically increasing of miner hashrate.</b></span></div><div =
class=3D"gmail_extra" style=3D"font-family: Helvetica; font-size: =
medium; font-style: normal; font-variant: normal; font-weight: normal; =
letter-spacing: normal; line-height: normal; orphans: 2; text-align: =
-webkit-auto; text-indent: 0px; text-transform: none; white-space: =
normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; =
-webkit-text-stroke-width: 0px; "><span style=3D"font-size: =
12.8000001907349px; "><b><br></b></span></div><div class=3D"gmail_extra" =
style=3D"font-family: Helvetica; font-size: medium; font-style: normal; =
font-variant: normal; font-weight: normal; letter-spacing: normal; =
line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: =
0px; text-transform: none; white-space: normal; widows: 2; word-spacing: =
0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; =
"><span style=3D"font-size: 12.8000001907349px; ">This simple theorem, =
suggested implicitly by Gmaxwell disproves any and all conclusions of my =
work. Most importantly, centralization pressures will always be =
present. </span></div></blockquote></div><br></div></body></html>=
--Apple-Mail=_A626710B-3D53-4A85-A348-EDDCB866C4AA--
|