Re: [Bitcoin-development] we can all relax now

2013-11-07 Thread Peter Todd
On Wed, Nov 06, 2013 at 10:59:28PM -0600, Kyle Jerviss wrote: Each block that you solve has a reward. In practice, some blocks will be orphaned, so the expected reward is slightly less than the nominal reward. Each second that you delay publishing a block, the expected reward drops somewhat.

[Bitcoin-development] On the optimal block size and why transaction fees are 8 times too low (or transactions 8 times too big)

2013-11-07 Thread Michael Gronager
Following the discussion on the recent mining sybil trick, I reread the article on block propagation by Decker et al.* and decided to use it for doing a proper estimate of transaction fee size and optimal block size. The propagation of a block depends on and is roughly proportional to its size.

Re: [Bitcoin-development] On the optimal block size and why transaction fees are 8 times too low (or transactions 8 times too big)

2013-11-07 Thread Pieter Wuille
Correcting myself: On Thu, Nov 7, 2013 at 4:00 PM, Pieter Wuille pieter.wui...@gmail.com wrote: I believe that C. Decker's paper used measurements for propagation delays for blocks 18-19, which happened between may and juli 2012. The latest bitcoind/bitcoin-qt release at the time was

Re: [Bitcoin-development] On the optimal block size and why transaction fees are 8 times too low (or transactions 8 times too big)

2013-11-07 Thread Mike Hearn
I think trying to help miners figure out the propagation/fees tradeoff at the moment is a non-starter until we understand it better ourselves. A server that tracks and records block propagation times, how many fees per passed up per block, orphan stats per size bucket etc would be tremendously

Re: [Bitcoin-development] we can all relax now

2013-11-07 Thread Mike Hearn
Once the ASIC race calms down because everyone has one, has more or less optimal power supplies, process improvements aren't easily reachable anymore etc then I'd expect people to dissipate from the large pools because eliminating their fees will become the next lowest hanging fruit to squeeze out

Re: [Bitcoin-development] On the optimal block size and why transaction fees are 8 times too low (or transactions 8 times too big)

2013-11-07 Thread Michael Gronager
-BEGIN PGP SIGNED MESSAGE- Hash: SHA1 On 7/11/13, 21:31 , Peter Todd wrote: Final conclusions is that the fee currently is too small and that there is no need to keep a maximum block size, the fork probability will automatically provide an incentive to not let block grows into