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ETH noob here. I don't understand why load would be a problem. Isn't the point of ETH that "miners" provide the space/cpu to execute contracts, and get paid in
by mundo 9y ago
ETH noob here. I don't understand why load would be a problem. Isn't the point of ETH that "miners" provide the space/cpu to execute contracts, and get paid in gas? Why doesn't "too much load" translate to "greater gas rewards" and hence to "miners switching from other cryptos to mine eth"?
- kruhft 9y agoThe issue is that ETH only can handle a certain amount of transactions per block (based on its block size). When the network gets overloaded, all of the potential transactions cannot be held in a single block and must be delayed until the next block, leading to higher fees for each transaction, giving it a higher priority and making it more likely to put in a block of a certain size. Same 'problem' as bitcoin; too many transactions are being fit into a finite space per block increasing competition to have your transaction in a block, but really it's just basic scarcity economics.