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Answers to those questions are not yet known. The price competition between different cryptocurrencies should be the necessary market mechanism. Someone has to
by Geee 6y ago
Answers to those questions are not yet known. The price competition between different cryptocurrencies should be the necessary market mechanism. Someone has to pay the price of mining, and if mining is not necessary, then it's not going to be paid. If it can be proven that the same security can be achieved with less mining, then either the Bitcoin protocol is updated, or a Bitcoin fork will become more valuable (and that fork will be named Bitcoin).
There are lots of cryptocurrencies which have infinite supply, which means that the mining rewards will keep the network running. For example Ethereum, Monero, Dogecoin and Grin. Bitcoin will rely on transaction costs, but it doesn't provide fully deterministic security as far as I know.
- rebuilder 6y agoI don't quite see how price competition between cryptos is a mechanism that optimizes security spending, unless you mean that cryptos that fail security will crash and burn. As for mining, it is necessary for reasons that have nothing to do with security. If you want to send a tx, you will pay a fee or perhaps hope for a kind miner to include your spend in a block. In no way are you signaling how much you think the Bitcoin network should spend on security.