Miner Collusion and the Bitcoin Protocol

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I appreciate the analyticity and intellectual rigor of this paper. It clearly exemplifies the kind of work required to find real truth in our world. Too bad our culture has been programmed to get their news off article headlines from somewhere like Quillette… leading people to believe that they could get rich from running a solar mining facility in Alaska if they just cared enough to do it. Keep on keeping on you two.


Interesting that they stop the analysis around 2018, shortly after segwit was introduced. Per segwit Miners were purposely producing empty block sandwiched between full blocks, this empty block time signature would be far less than then normal 10 minutes. If memory serves there were 2 or 3 large pools doing this, I don’t believe this is still commonplace.


Pretty generous assessment here. Miners are likely extracting well over 200M a year, but it’s a good minimum. This phenomenon really limits the number of people who can use the blockchain profitably. Only those who are deploying ever greater amounts of BTC can continue to make profit on the chain. This is a very strong centralizing effect that makes BTC a greater fool game that the insiders are well suited to win.


How is this relevant to investors?


The authors completely ignored ASICBoost.