public inbox for bitcoindev@googlegroups.com
 help / color / mirror / Atom feed
From: Michael Gronager <gronager@ceptacle.com>
To: bitcoin-development@lists.sourceforge.net
Subject: Re: [Bitcoin-development] Even simpler minimum fee calculation formula: f > bounty*fork_rate/average_blocksize
Date: Fri, 15 Nov 2013 12:58:14 +0100	[thread overview]
Message-ID: <52860C56.7000608@ceptacle.com> (raw)
In-Reply-To: <20131115111204.GF17034@savin>

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

>> 

>> Q = Total pool size (fraction of all mining power) q = My mining
>> power (do.) e = fraction of block fee that pool reserves
>> 
> 
> Unfortunately the math doesn't work that way. For any Q, a bigger
> Q gives you a higher return. Remember that the way I setup those
> equations in section 3.2 is such that I'm actually modeling two
> pools, one with Q hashing power and one with (1-Q) hashing power.
> Or maybe more accurately, it's irrelevant if the (1-Q) hashing
> power is or isn't a unified pool.

My Q and q are meant differently, I agree to your Q vs Q-1 argument,
but the q is "me as a miner" participating in "a pool" Q. If I
participate in a pool I pay the pool owner a fraction, e, but at the
same time I become part of an economy of scale (well actually a math
of scale...) and that can end up paying for the lost e. The question
is what is the ratio q/Q where I should rather mine on my own ? This
question is interesting as it will make bigger miners break away from
pools into solo mining, but I also agree that from pure math the most
advantageous scenario is the 100% mining rig.

> The equations give an incentive to centralize all the way up to 1
> miner with 100% hashing power.
> 
> Of course, if that one pool were p2pool, that might be ok!

Ha, yes, and then the math for p2pool starts... a math where we have
much more stales...


-----BEGIN PGP SIGNATURE-----
Version: GnuPG/MacGPG2 v2.0.22 (Darwin)
Comment: GPGTools - http://gpgtools.org
Comment: Using GnuPG with Thunderbird - http://www.enigmail.net/

iQEcBAEBAgAGBQJShgxWAAoJEKpww0VFxdGRoiwH/3RGTH503PJ8UWuyKjrxscb4
dG3TyThZCDs12DvtC+2TPKnIkQFinGx9442tZU/O+qmwsGJsNVoEcnGmKEYz/vlI
XzFF30ugslB4FKwHZYRqXELaKR4RvUtSzu6td8P3n+e6d0MZsuemMornpbXZkw3n
CbMlYuiG4h3iUAwTaOTS26cFbZoo6eyogydDjnS7Ogi2Ur85Rydi/Lj24rj7UxYB
+WUkYAv3bCqCzTkv1LxO7HwY1SICZDmoGRbuil5M7bJ+MftYt6Q6DVprGSVP0mOV
9eEVeMVY/WmMZCI/01ruXpzC3gxU60vOd/a3q9G2hd9Tn00HzugAllEXh7ZzzUs=
=unP8
-----END PGP SIGNATURE-----



  reply	other threads:[~2013-11-15 11:58 UTC|newest]

Thread overview: 16+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
2013-11-13 11:52 [Bitcoin-development] Even simpler minimum fee calculation formula: f > bounty*fork_rate/average_blocksize Michael Gronager
2013-11-13 12:34 ` Michael Gronager
2013-11-15 10:46   ` Peter Todd
2013-11-13 20:01 ` John Dillon
2013-11-13 20:32   ` Michael Gronager
2013-11-15  9:54   ` Peter Todd
2013-11-15  9:59     ` Gregory Maxwell
2013-11-15 10:47     ` Michael Gronager
2013-11-15 11:12       ` Peter Todd
2013-11-15 11:58         ` Michael Gronager [this message]
2013-11-15 19:09           ` Peter Todd
2013-11-15 10:32 ` Peter Todd
2013-11-15 11:47   ` Michael Gronager
2013-11-15 19:19     ` Peter Todd
2013-11-20 10:01       ` Peter Todd
2013-11-13 23:52 Gavin Andresen

Reply instructions:

You may reply publicly to this message via plain-text email
using any one of the following methods:

* Save the following mbox file, import it into your mail client,
  and reply-to-all from there: mbox

  Avoid top-posting and favor interleaved quoting:
  https://en.wikipedia.org/wiki/Posting_style#Interleaved_style

* Reply using the --to, --cc, and --in-reply-to
  switches of git-send-email(1):

  git send-email \
    --in-reply-to=52860C56.7000608@ceptacle.com \
    --to=gronager@ceptacle.com \
    --cc=bitcoin-development@lists.sourceforge.net \
    /path/to/YOUR_REPLY

  https://kernel.org/pub/software/scm/git/docs/git-send-email.html

* If your mail client supports setting the In-Reply-To header
  via mailto: links, try the mailto: link
Be sure your reply has a Subject: header at the top and a blank line before the message body.
This is a public inbox, see mirroring instructions
for how to clone and mirror all data and code used for this inbox