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> LN doesn't really solve the energy problem because the incentive for miners to compete is still dominated by the mining reward rather than transaction costs.
by darawk 8y ago
> LN doesn't really solve the energy problem because the incentive for miners to compete is still dominated by the mining reward rather than transaction costs.
You're right, it doesn't solve the energy problem. LN solves the fee problem. The energy problem is addressed by something like proof of stake.
> Proof of stake is interesting but I don't think it's been used at scale yet has it?
It's been used in a number of non-major cryptocurrencies. Its been analyzed quite a bit though, and there are high-value (in the sense of market cap - i.e. large bounty for someone to exploit it, if it were possible) working implementations out there.
- paulgb 8y agoDo you see a solution to the energy use problem that doesn't involve a massive devaluation of Bitcoin?
- darawk 8y agoRight now, proof of stake seems like the best solution to the energy problem. AFAIK, bitcoin is not looking to implement PoS, so my bet is on Ethereum to address this issue.
- jmull 8y agoYou haven't solved the fee problem if you haven't solved the energy problem.
- darawk 8y agoI'm not sure what your reasoning here is, but you're wrong. LN basically allows you to dramatically expand the number of transactions per block. The blocks still take energy to mine, but the per-transaction fee gets sharply reduced.