Skip to content

Commit

Permalink
Update README.md
Browse files Browse the repository at this point in the history
Fixes bitcoin-cap#19 

Added table and adjusted language to accommodate
  • Loading branch information
jaybeddict1 authored Nov 16, 2024
1 parent 3fbb542 commit 3679c9a
Showing 1 changed file with 12 additions and 1 deletion.
13 changes: 12 additions & 1 deletion README.md
Original file line number Diff line number Diff line change
Expand Up @@ -233,7 +233,18 @@ Powers:
- Potentially censor transactions by not including them in blocks.
- Direct hash power to compete for chains in the event of a fork. Each ASIC mining chip can only mine for one side of a fork.[^7]

In the current environment, Miners rarely run bitcoin software to construct block templates and thus do not directly control which consensus rules to follow, only a handful of pools do. However, the switching costs are low for a miner to switch to another pool. So if a pool acts against the interests of a miner, they will lose customers. The Miner’s state of mind (SOM) matters, if the miner is unaware or apathetic (SOM3, SOM4) then they might not even be aware it is in their interest to switch pools. In the future, we may see a shift toward Miners running bitcoin software and directly controlling transaction selection and choosing consensus rules with protocols such as Stratum v2 and Braidpool.[^8] [^9]
In the current environment, Miners rarely run bitcoin software to construct block templates and thus do not directly control which consensus rules to follow, only a handful of pools do. However, the switching costs are low for a miner to switch to another pool. So if a pool acts against the interests of a miner, they will lose customers. The Miner’s state of mind (SOM) matters, if the miner is unaware or apathetic (SOM3, SOM4) then they might not even be aware it is in their interest to switch pools.

The current segmentation of Miners power is detailed below

| Segment of Miner | Create new blocks | Signal readiness for protocol changes | Censor transactions | Direct hash power to competing chain |
| ------------------------------------- | ------------------------------------------- | -------------------------------------------------------------- | ------------------------ | ------------------------------------ |
| Individual Miners | Possible, if solo mining | Possible, if solo mining | Possible, if solo mining | Yes |
| Large Scale Miners | No | No | No | Yes |
| Mining Pools | Yes | Yes | Yes | No |
| Chip manufacturers | No | No | No | No |

In the future, we may see a shift toward Miners running bitcoin software and directly controlling transaction selection and choosing consensus rules with protocols such as Stratum v2 and Braidpool.[^8] [^9]

Incentives:

Expand Down

0 comments on commit 3679c9a

Please sign in to comment.