Topic: If bitcoin mining = transaction verification... (Read 1569 times)
well, an other thing is to see in perpective : the fees for mining probably will be "high valuable" in FIAT level than actually ... (1BTC = 100 000 USD so fees are OK for mining process and for reward).
Ahhhh Ok... Thanks for that... I guess the biggest thing I wasn't comprehending was the difference between verification and confirmation... Honestly didn't know there was a difference. I suppose this thread should help clear up a bunch of stuff for us people who arent extremely educated in bitcoin but know a good bit about it. haha. bit
If finding a block is the result of mining,
It is.
which is the process of transaction verification,
It is not. Mining is the process of transaction "confirmation", not transaction "verification". There is a difference. All nodes that properly implement the protocol perform verification on all transactions and all blocks. However, only the miner that successfully solves the block that has the transaction in it "confirms" the transaction.
so what will happen when all the bitcoins are mined out? The reward for mining will be gone. So who is going to verify all the transactions?
Miners receive a block reward for their effort. Currently the block reward consists of the sum of a block subsidy of 25 brand new bitcoins PLUS the transaction fees for all transactions included in the block. Every 210,000 blocks (approximately every 4 years) the block subsidy is cut in half and rounded down to the nearest satoshi. This means that the block subsidy will get smaller over time. Meanwhile, as bitcoin becomes more popular, the total number of transactions (and total value of all transaction fees) should increase over time. Eventually (around the year 2140) when the block subsidy is 0, the block reward will consist of ONLY the transaction fees. Hopefully in the next 125 years bitcoin will become popular enough that the fees will be sufficient for mining to continue at a high enough level.
will the bitcoin die when its all mined up?
It shouldn't.
Even if that takes many many years,
Approximately 125 more years.
will the halvings and difficulty skyrocketing effect the stability of bitcoin?
It shouldn't. It is designed to hopefully reach a balance.
because it will eventually just become completely unworth it to mine,
That shouldn't be possible. If enough miners shut off their equipment, then the difficulty decreases (just like it has the past two adjustments). The decrease in difficulty makes mining more profitable for those that remain.
which would put the bitcoin at huge risk for the 51% takeover if I am right?
Yes, if enough people stop mining, then there is always a risk of one entity gaining permanent control of more than 50% of the total global hash power. However, I don't see any reason yet for such a significant number of miners to stop.
If finding a block is the result of mining, which is the process of transaction verification, so what will happen when all the bitcoins are mined out? The reward for mining will be gone. So who is going to verify all the transactions? will the bitcoin die when its all mined up?
Even if that takes many many years, will the halvings and difficulty skyrocketing effect the stability of bitcoin? because it will eventually just become completely unworth it to mine, which would put the bitcoin at huge risk for the 51% takeover if I am right?
Even if that takes many many years, will the halvings and difficulty skyrocketing effect the stability of bitcoin? because it will eventually just become completely unworth it to mine, which would put the bitcoin at huge risk for the 51% takeover if I am right?
Blocks will still be mined when 21m bitcoins will be in place. Those blocks wont have any reward, but there will be mining fees. So miners will still be compensated for their mining and there will be competition, just like you experience today. So, network will still be protected and there will be very little possibility of 51% attack, just like it is today.
The idea is that people will keep mining bitcoin to keep the network alive as stopping would wipe out their wealth.
Not saying it's going to work but that is the idea.
Not saying it's going to work but that is the idea.
If you do not understand the system, it is better not to comment to confuse others.
Hmm... just doesnt seem too well thought out in my opinion... but then I guess if there was a better way to do it they probably would have. Just makes me question the longevity of investing in this.
The idea is that people will keep mining bitcoin to keep the network alive as stopping would wipe out their wealth.
Not saying it's going to work but that is the idea.
Not saying it's going to work but that is the idea.
If finding a block is the result of mining, which is the process of transaction verification, so what will happen when all the bitcoins are mined out? The reward for mining will be gone. So who is going to verify all the transactions? will the bitcoin die when its all mined up?
Even if that takes many many years, will the halvings and difficulty skyrocketing effect the stability of bitcoin? because it will eventually just become completely unworth it to mine, which would put the bitcoin at huge risk for the 51% takeover if I am right?
Even if that takes many many years, will the halvings and difficulty skyrocketing effect the stability of bitcoin? because it will eventually just become completely unworth it to mine, which would put the bitcoin at huge risk for the 51% takeover if I am right?
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