Funding network security - Revision history

Furunodo: /* Inflation Subsidy */ 6.25

2020-06-23T10:32:12Z

Inflation Subsidy: 6.25

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	== Inflation Subsidy ==		== Inflation Subsidy ==

	Currently each block [[Controlled_Currency_Supply\|creates 12.5 BTC]] as the block		Currently each block [[Controlled_Currency_Supply\|creates 6.25 BTC]] as the block
	reward~~; as~~ of April 2013 that inflated the currency supply by about 11% per		reward. As of April 2013 that inflated the currency supply by about 11% per
	year, in effect transferring 11% of the value of all the Bitcoins in existence		year, in effect transferring 11% of the value of all the Bitcoins in existence
	to miners to pay for the security they provide. However, every four years (210,000 blocks, actually) the		to miners to pay for the security they provide. However, every four years (210,000 blocks, actually) the

Midnightmagic: mostly minor corrections including modernizing text

2017-06-07T19:03:28Z

mostly minor corrections including modernizing text

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	== Inflation Subsidy ==		== Inflation Subsidy ==

	Currently each block [[Controlled_Currency_Supply\|creates 25 BTC]] as the block		Currently each block [[Controlled_Currency_Supply\|creates 12.5 BTC]] as the block
	reward; as of April 2013 that ~~inflates~~ the currency supply by about 11% per		reward; as of April 2013 that inflated the currency supply by about 11% per
	year, in effect transferring 11% of the value of all the Bitcoins in existence		year, in effect transferring 11% of the value of all the Bitcoins in existence
	to miners to pay for the security they provide. However, every four years the		to miners to pay for the security they provide. However, every four years (210,000 blocks, actually) the
	block reward is decreased by half, thus halving the overall inflation subsidy		block reward is decreased by half, thus halving the overall inflation subsidy
	that pays miners.		that pays miners.

	The inflation subsidy pays miners directly from Bitcoin as a whole; in effect		The inflation subsidy pays miners directly from Bitcoin as a whole; in effect
	everyone holding Bitcoins is paying for security directly~~. However at some~~		everyone holding Bitcoins is paying for security directly. In addition a miner can still collect the inflation
	~~point it will become small enough that Bitcoin could be attacked by someone~~		subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>, although empty blocks still do increase the security of blocks preceding them.
	~~with very little resources~~. In addition a miner can still collect the inflation
	subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack.<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>

	It is predicted that the inflation subsidy will reach less than 1% of the		It is predicted that the inflation subsidy will reach less than 1% of the
	Bitcoin ~~nominal market cap~~ sometime in 2033. However that figure is subject to		Bitcoin total supply sometime in 2033. However that figure is subject to
	the amount of [[lost coins]] from the early days of Bitcoin~~; it is unknown what~~		the amount of [[lost coins]] from the early days of Bitcoin.
	~~the market cap of coins with owners able to spend them actually is or will be~~.

	== Transaction Fees ==		== Transaction Fees ==

Taras: Undo revision 57317 by Yashar (talk) - This is an original document

2015-07-10T01:44:08Z

Undo revision 57317 by Yashar (talk) - This is an original document

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	everyone holding Bitcoins is paying for security directly. However at some		everyone holding Bitcoins is paying for security directly. However at some
	point it will become small enough that Bitcoin could be attacked by someone		point it will become small enough that Bitcoin could be attacked by someone
	with very little resources~~, with or without the use of [http://cloudroll.io CloudRoll]~~. In addition a miner can still collect the inflation		with very little resources. In addition a miner can still collect the inflation
	subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack.<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>		subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack.<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>

Yashar at 00:39, 8 July 2015

2015-07-08T00:39:44Z

← Older revision		Revision as of 00:39, 8 July 2015
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	everyone holding Bitcoins is paying for security directly. However at some		everyone holding Bitcoins is paying for security directly. However at some
	point it will become small enough that Bitcoin could be attacked by someone		point it will become small enough that Bitcoin could be attacked by someone
	with very little resources. In addition a miner can still collect the inflation		with very little resources, with or without the use of [http://cloudroll.io CloudRoll]. In addition a miner can still collect the inflation
	subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack.<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>		subsidy without including any transactions at all in the blocks they mine, an activity that can be seen as an attack.<ref>[https://bitcointalk.org/index.php?topic=69423.0 Miners that refuse to include transactions are becoming a problem]</ref>

Petertodd: make "what is security" section

2013-04-15T13:50:41Z

make "what is security" section

← Older revision		Revision as of 13:50, 15 April 2013
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	vulnerable to reversal. In addition the attacker can exploit [[Transaction Malleability]] to make it impossible for those transactions to ever be included		vulnerable to reversal. In addition the attacker can exploit [[Transaction Malleability]] to make it impossible for those transactions to ever be included
	in the blockchain again.		in the blockchain again.

			== What is security? ==

	The hashing power majority does not need to constitute a single individual or		The hashing power majority does not need to constitute a single individual or

Petertodd: grammar

2013-04-15T13:49:27Z

grammar

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	majority may not want to take that risk.		majority may not want to take that risk.

	Conversely the opposite may be true in either example; what "security" is may not always be obvious or easily agreed upon.		Conversely the opposite may be true in either example - what "security" is may not always be obvious or easily agreed upon.

	== Inflation Subsidy ==		== Inflation Subsidy ==

Petertodd: fix link

2013-04-15T13:48:38Z

fix link

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	If you have followed a link to this page from reddit or elsewhere discussing Mike Hearn's assurance contracts proposal to fund network security, please see [https://bitcointalk.org/index.php?topic=157141.msg1665332#msg1665332\|the discussion on bitcointalk] for the original document. Below is a general discussion of how network security is funded now and could be in the future, including Mike's proposal.		If you have followed a link to this page from reddit or elsewhere discussing Mike Hearn's assurance contracts proposal to fund network security, please see [https://bitcointalk.org/index.php?topic=157141.msg1665332#msg1665332 the discussion on bitcointalk] for the original document. Below is a general discussion of how network security is funded now and could be in the future, including Mike's proposal.

	<hr/>		<hr/>

Petertodd: /* Off-chain Transactions */ grammerz

2013-04-15T11:06:22Z

Off-chain Transactions: grammerz

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	=== Off-chain Transactions ===		=== Off-chain Transactions ===

	If making a transaction becomes too expensive it can become worthwhile to use an [[Off-Chain Transactions\|off-chain payment system]] to move the funds instead, either one denominated in Bitcoins, or in a different currency entirely~~; the~~ availability of off-chain transactions limits the maximum fees that miners can charge, in turn limiting the value of transactions as a way to fund security.		If making a transaction becomes too expensive it can become worthwhile to use an [[Off-Chain Transactions\|off-chain payment system]] to move the funds instead, either one denominated in Bitcoins, or in a different currency entirely. The availability of off-chain transactions limits the maximum fees that miners can charge, in turn limiting the value of transactions as a way to fund security.

	== Alternatives ==		== Alternatives ==

Petertodd: /* Off-chain Transactions */ add link

2013-04-15T11:06:01Z

Off-chain Transactions: add link

← Older revision		Revision as of 11:06, 15 April 2013
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	=== Off-chain Transactions ===		=== Off-chain Transactions ===

	If making a transaction becomes too expensive it can become worthwhile to use		If making a transaction becomes too expensive it can become worthwhile to use an [[Off-Chain Transactions\|off-chain payment system]] to move the funds instead, either one denominated in Bitcoins, or in a different currency entirely; the availability of off-chain transactions limits the maximum fees that miners can charge, in turn limiting the value of transactions as a way to fund security.
	an off-chain payment system to move the funds instead, either one denominated
	in Bitcoins, or in a different currency entirely; the availability of off-chain
	transactions limits the maximum fees that miners can charge, in turn limiting the value of transactions as a way to fund security.

	== Alternatives ==		== Alternatives ==

Petertodd: Merge content with 'original proposal' link

2013-04-14T21:53:43Z

Merge content with 'original proposal' link

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