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From: Peter Todd <pete@petertodd•org>
To: Pieter Wuille <pieter.wuille@gmail•com>
Cc: Bitcoin Dev <bitcoin-development@lists•sourceforge.net>
Subject: Re: [Bitcoin-development] Mining centralization pressure from non-uniform propagation speed
Date: Fri, 12 Jun 2015 14:01:13 -0400	[thread overview]
Message-ID: <20150612180028.GA19199@muck> (raw)
In-Reply-To: <CAPg+sBi5fYHGLv4wtWbWE7jov8CX=q9UX=vhxDVepG6JfX30+g@mail.gmail.com>

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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 miners
> (one 80%=25%+25%+30%, one 20%=5%+5%+5%+5%), which are well-connected
> internally, but are only connected to each other through a slow 2 Mbit/s
> link.
> 
> Here are some results.
> 
> 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.

-- 
'peter'[:-1]@petertodd.org
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  parent reply	other threads:[~2015-06-12 18:01 UTC|newest]

Thread overview: 11+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
2015-06-12 16:51 Pieter Wuille
2015-06-12 17:21 ` Gavin Andresen
2015-06-12 18:30   ` Peter Todd
2015-06-12 18:39     ` Pieter Wuille
2015-06-12 18:01 ` Peter Todd [this message]
2015-06-12 18:24 ` Mike Hearn
2015-06-12 18:26   ` Pieter Wuille
2015-06-12 18:27     ` Mike Hearn
2015-06-14 17:45 ` Jonas Nick
2015-06-18 22:00   ` Tom Harding
2015-06-19  1:31     ` Yifu Guo

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