Replacing Altruism With Markets
In Chris Pacia's spectacular recent article, he covers, amongst other things, a lot of altruistic behaviors in Bitcoin (BCH). Every one of these altruistic behaviors can actually be replaced with markets. All of these markets will develop at scale using Bitcoin itself as the monetary unit and payment system.
- Gossip algorithm: Nodes will pay for data from other nodes either per message or with a subscription.
- Relaying transactions: You will give your transaction directly to a miner and therefore pay a transaction fee, or you will give a transaction to a merchant who is incentivized to give it to a miner. Merchants can even accept 0 fee transaction and use child-pays-for-parent (CPFP) to add a fee.
- SPV: Pay per message or a subscription fee for data. (You could use SPV for free if someone monetizes your data, but I hope most people choose to pay a bit more for privacy. But that's their choice.)
- Full nodes voluntarily keeping privacy: Eventually, full nodes will monetize by selling your data unless you pay them not to.
- Transactions with zero fees: CPFP with transaction given directly to merchant, as stated above.
- 51% miners: So long as Bitcoin Cash is the dominant chain and most likely candidate for future money, miners are incentivized not to censor transactions.
- 35% attacks: Same incentives as above. For small coins that are likely going to be destroyed anyway, it makes sense to attack them and scrape as much value out of them before they fail, but for a coin that is likely to work, they do not have an incentive to ruin the value of their own coin.
- Matt Corralo's miner distribution network: Miners are already incentivized to get their blocks to other miners as quickly and efficiently as possible, so they will almost certainly continue to cover this cost as a business expense.
- Non-mining nodes forwarding blocks: Eventually nodes that contribute nothing to the network will either need to pay for the data or they will be excluded.
- Seed nodes: These can be paid for, but the cost is so low that I'm not sure that will ever happen, or if it does it will be included with a package for other services such as SPV.
- Block transmission: As already stated, nodes will pay for data from other nodes. Unless you are a miner, in which case other miners will give you their blocks for free.
- RBF: Miners do not want to ruin the value of the payment network that they get paid in because it makes it worth less to them.
- Mining pool infiltration: Pay bounties to identify criminals and bad actors who try to ruin the network.
- Free developers: This is what got us Bitcoin Core. Expecting developers to work for free incentivizes them to build their own monetization into the protocol. You can avoid issues by simply paying developers to write software.
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