Re: [bitcoin-dev] Segregated Witness in the context of Scaling Bitcoin

[Jeff Garzik <jgarzik@gmail.com>]

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On Wed, Dec 16, 2015 at 3:59 PM, Pieter Wuille <pieter.wuille@gmail.com>
wrote:

> On Wed, Dec 16, 2015 at 9:38 PM, Jeff Garzik via bitcoin-dev
> <bitcoin-dev@lists.linuxfoundation.org> wrote:
> > 4.3.  Observations on new block economic model
> >
> > SW complicates block economics by creating two separate, supply limited
> > resources.
>
> Not correct. I propose defining the virtual_block_size as base_size +
> witness_size * 0.25, and limiting virtual_block_size to 1M. This
> creates a single variable to optimize for. If accepted, miners are
> incentived to maximize fee per virtual_block_size instead of per size.
>

It is correct.  There are two separate sets of economic actors and levels
of contention for each set of space.

That is true regardless of the proposed miner selection algorithm.



> > 5.4.  Problem:   More complex economic policy, new game theory, new
> bidding
> > structure risks.
> >
> > Splitting blocks into two pieces, each with separate and distinct
> behaviors
> > and resource values, creates two fee markets.
>
> I believe you have misunderstood the proposal in that case.
>

See above.  There are two separate and distinct resource velocities and
demand levels in reality.  That creates two markets regardless of miner
selection algorithm in the block maker.

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