Supporting transactions: Enforcing decentralization of bitcoin mining

kaibakker · Wed Nov 25, 2015 11:59 am

Hey everyone,
Just wrote the following article, Supporting transactions: Enforcing decentralization of bitcoin mining.
https://medium.com/@kaibakker/support-t ... .a6q3o94qo

Would be happy to receive some feedback.
Kai

BitcoinXio · Thu Nov 26, 2015 1:01 am

Hey everyone,
Just wrote the following article, Supporting transactions: Enforcing decentralization of bitcoin mining.
https://medium.com/@kaibakker/support-t ... .a6q3o94qo

Would be happy to receive some feedback.
Kai

Interesting article! I have a few questions.

You wrote "These transactions won’t be shared publicly over the network, but instead they will be send directly to the miners and mining pools the sender wants to support."

How does that work technically? Won't that create off chain tx's and a centralized network between users and miners?

You also later write "Miners that want to receive supporting transactions, should adjust their settings so that they do not relay any transactions."

Again, doesn't this create silos of mining networks processing centralized tx's instead of a global network?

Also, what do you think about the recent change that China exchange B.TC China made where they are now prioritizing B.TC China user tx's over others?

kaibakker · Thu Nov 26, 2015 10:34 am

Interesting question, It is indeed through that the bitcoin network won't know about supporting transactions until they are confirmed in a block. The question is: Is this a problem? Do we need to know about every unconfirmed transaction?

About the prioritisation of transactions for Chinese exchanges. I don't see any harm in this: Miners are free to do whatever lies in there interest (it is an independent business). Aslong a the mining network is decentralized, there is always a miner willing to include my transaction in a block.

CryptAxe · Fri Nov 27, 2015 12:04 am

What if you send your transaction to a miner and then that miner doesn't get it into any blocks?

kaibakker · Fri Nov 27, 2015 9:41 am

What if you send your transaction to a miner and then that miner doesn't get it into any blocks?

It will be best practice to make the transaction public if it transaction is not confirmed within a certain timeframe. After this timeframe (for example 6 hours) any miner can confirm it like a normal transaction.

CryptAxe · Sat Nov 28, 2015 6:12 am

What if you send your transaction to a miner and then that miner doesn't get it into any blocks?
It will be best practice to make the transaction public if it transaction is not confirmed within a certain timeframe. After this timeframe (for example 6 hours) any miner can confirm it like a normal transaction.

Okay I see what you're thinking now. So you could setup a website with a list of well trusted miners sorted by ratings or something. And then you would be able to select miners from that list and send your transactions to the ones you want to support. The website would then after a set period of time broadcast the transaction to the entire Bitcoin network to make sure that it ends up on the blockchain. Do I have the general idea?