Has Mining Failed? – Trustnodes

Has Mining Failed?


Kings they once were, sitting in conferences, dictating crucial matters, telling us njet. Bankrupt now most of them will be, a footnote in crypto history, if that.

Like Ghash, which once ruled and told us to trust them. Or the much forgot BTC Guild, which too once ruled then closed its doors in 2015.

The current ones will also probably revolve, but is there a fundamental problem with mining? Has it simply gone wrong?

Bitcoin’s ever rising hashrate.

Bitcoin’s security model is a 10 of 1 multisig, Vitalik Buterin, ethereum’s inventor, said in commentary of the first picture which showed all miners in one room.

Bitcoin miners at the “scalability workshop” in 2015.

Some of them are no longer miners, while some others still on the stage are pretty close to no longer being miners.

Ruthless, the crypto mining system is in design, but while they do revolve, it is still just a handful of mostly men who do meet with each other as shown above, may well collude, and have great say on how the network runs.

Some would have us believe they do not matter, it is all about nodes, but even as they say so they know it is not fully true.

The decision by ethereum miners in December, for example, to not increase the gas limit and thus not increase capacity, did and does matter. Bitmain nearing 51% of the bitcoin hashrate does matter.

The clear misalignment between the interest of mining pools and that of the network as a whole does matter and does so significantly.

While some think miners are long term invested, facts show differently. The primary fact being that many of them go bankrupt very quickly, and much of their hardware becomes useless bricks even quicker.

It is thus no wonder they were gleeful to see fees rise and rise in bitcoin to the point they reached a level that was as high as the block inflation of 12.5 btc every ten minutes.

Publicly, of course, they may well have claimed they’d rather capacity is increased, and perhaps they even meant it, but that they didn’t increase it is, at the end of it all, solely their decision.

Not the developers, who only had words, not the nodes, who don’t even have words, not the businesses which were demanding its increase, but the miners which swam in greed.

Now they rush to sell and sell, without care one bit for the price pressure. One CPU one vote so becoming a multisig of ten.

And if you think it wasn’t the miners, then who failed to raise capacity in ethereum? The developers were silent on that one. The miners ruled and told the kitties: njet.

Of course they give reasons. Too many orphans, they tell us. And what are they doing about it? They get billions of dollars through inflation. Can’t they hire some developers to lower those orphans? Or is it all Vitalik’s responsibility even as they swim in greed.

They can’t lower those orphans themselves because they want more and more money in fees, quickly loot and leave for time is short in the mining world.

They almost bankrupt now, at least some of them. What do they care that when the world saw bitcoin, they saw $70 fees and days or even weeks for a confirmation. And when they saw ethereum, they saw it can’t even handle some cats.

But it can. It could. It would have done had it been truly one CPU one vote. Or even 10 CPUs one vote. Instead of what we have now, three men all votes.

Ethereum’s network at the gas limit was running at 1MB every ten minutes. The entire blockchain is merely 70GB. Some brief respite to two megabyte while long term solutions are developed would have been nothing.

At least we’re fortunate to have Casper on the way to democratize public blockchains once again. Nodes then will actually matter again. Nodes will even get paid. They will, once more, actually have a say. All of it while also preserving scarce energy resources.

It can’t come fast enough for the many will be able to serve their interests far better than three men can care. Then we can have kitties again and a liberated public blockchain which is not under the grip of endless greed.

Copyrights Trustnodes.com


Comments (2)

  1. Great article! Go Ethereum!

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