Erdogan said:
Is there really a tragedy of the commons scenario in the block space? Every single actor wants more, but the commons is better off with using less?
go1111111 :
I'm strongly against the OP's suggestion to remove the ability of nodes to set their own block limit.
From the BU main site: "As a foundational principle, we assert that Bitcoin is and should be whatever its users define by the code they run, and the rules they vote for with their hash power." My understanding is that "Unlimited" is supposed to refer to unlimited choice.
If me and a bunch of other Bitcoin users decide that right now, in early 2016, we don't want our full node software to automatically follow blocks above 32 MB (or automatically waste time trying to validate them), we should have some easy way to do this.
The tragedy of the commons occurs among miners. Every individual miner wants more block space available for blocks that they mine (because they get all the fees of those extra txns), but not necessarily for blocks that other miners mine (because a higher supply of block space can lower fees for all miners). This is similar to how a cartel can make themselves better off by restricting supply.
Re red text:
But a cartel can't, really, restrict supply, in the free market. Ask Henry Ford. They can, only if they are protected by the power of the state, which miners are not.
Re blue text:
In our case of mining, the miners act independently accordingly to their self interest to use as much space as possible, but they are restricted by the difficulty, an essential property of the system that protects the sound money aspect. Later, with only fees, the difficulty is still essential to assure great hashing power. The difficulty protects the commons.
To compare to the standard example on tragedy of the commons, grassing rights: You can come to the commons with as many cattle as you like, but in the satoshi-grassing-system, each cow-owner can only feed a percentage of his cows. If the commons can support 100 cows, and three farmers come with 30, 70 and 100 cows, difficulty becomes 50% and they can lead only 15, 35 and 50 cows into the field, respectively.
I am sure the conditions of transmission time, latency and verification time (the main constraints) at the very limit of the capacity can be discussed. But orphaning is not really a problem for the system as a whole, it just makes the average block a bit more costly, and therefore reduce the difficulty. The question is, will the transaction capacity (transactions per second) be lower near the limit, and if so, is it a problem?
[doublepost=1454714511][/doublepost]Yes I hate the quoting system of this site, an try to find a better way, like a real entrepreneur.
[doublepost=1454714561][/doublepost]When I press Quote, I would like the fucking text to be copied.