From: Tom Harding <tomh@thinlink•com>
To: bitcoin-development@lists•sourceforge.net
Subject: Re: [Bitcoin-development] A statistical consensus rule for reducing 0-conf double-spend risk
Date: Mon, 12 May 2014 06:04:47 -0700 [thread overview]
Message-ID: <5370C6EF.8020001@thinlink.com> (raw)
In-Reply-To: <537050E0.2040008@thinlink.com>
Sorry to run on, a correction is needed. A much better approximation
requires that the rule-following minority finds the next TWO blocks, so
the cost is
(total miner revenue of block)*(fraction of hashpower following the rule)^2
So the lower bound cost in this very pessimistic scenario is .0025 BTC,
still quite high for one transaction. I guess miner could try to make a
business out of mining double-spends, to defray that cost.
On 5/11/2014 9:41 PM, Tom Harding wrote:
> Back up to the miner who decided to include a "seasoned" double-spend
> in his block. Let's say he saw it 21 seconds after he saw an earlier
> spend, and included it, despite the rule.
>
> The expected cost of including the respend is any revenue loss from
> doing so: (total miner revenue of block)*(fraction of hashpower
> following the rule). So today, if only 1% of hashpower follows the
> rule (ie a near total failure of consensus implementation), he still
> loses at least .25 BTC.
>
> .25 BTC is about 1000x the typical "double-spend premium" I'm seeing
> right now. Wouldn't the greedy-rational miner just decide to include
> the earlier spend instead
prev parent reply other threads:[~2014-05-12 13:04 UTC|newest]
Thread overview: 5+ messages / expand[flat|nested] mbox.gz Atom feed top
2014-05-04 0:29 Tom Harding
2014-05-04 2:54 ` Christophe Biocca
2014-05-06 17:49 ` Tom Harding
2014-05-12 4:41 ` Tom Harding
2014-05-12 13:04 ` Tom Harding [this message]
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